Minsud Resources Corp.
TSX VENTURE : MSR

Minsud Resources Corp.

September 10, 2013 16:22 ET

Minsud Announces Closing of Above Market Non-Brokered Private Placement Financing for Gross Proceeds of $360,000

TORONTO, ONTARIO--(Marketwired - Sept. 10, 2013) - Minsud Resources Corp. (TSX VENTURE:MSR) ("Minsud" or the "Company") is pleased to announce the closing of its non-brokered private placement offering of units in Minsud (the "Units") for gross proceeds of $360,000 (the "Private Placement"). In connection with the closing of the Private Placement, which was initially announced on August 14, 2013, Minsud issued 3,600,000 Units at a price of $0.10 per Unit with each Unit comprising of one common share in the capital of the Company ("Common Share") and one common share purchase warrant ("Warrant"). Each Warrant is exercisable for one Common Share at a price of $0.35 for a period of 24 months from the closing date of the Private Placement.

The proceeds of the Private Placement will be used by Minsud for financing exploration costs, option payments relating to Minsud's material properties and for general working capital purposes.

Out of the 3,600,000 Units issued under the Private Placement, 1,200,000 Units were purchased by Compañía de Tierras Sud Argentino S.A. ("CTSA"), a current insider and control person of the Company.

The securities issued in connection with the closing of the Private Placement will be subject to a four month hold period expiring on January 11, 2014.

Early Warning

CTSA acquired 1,200,000 Units in the Private Placement and now owns (a) directly 9,400,300 Common Shares, (b) 1,200,000 Common Shares issuable upon the exercise of Common Share purchase warrants expiring on September 10, 2015, (c) 526,316 Common Shares issuable upon the exercise of Common Share purchase warrants expiring on June 18, 2014, and (d) 790,000 Common Shares issuable pursuant to an option agreement with the Issuer, representing, in the aggregate, approximately 25.75% of the total issued and outstanding Common Shares, calculated on a partially diluted basis assuming the exercise of the convertible securities described in items (b), (c) and (d) above. CTSA's Vice President, Diego Eduardo Perrazo, who may be considered a joint actor with respect to CTSA, owns (a) directly 780,803 Common Shares, (b) 500,000 Common Shares issuable upon the exercise of stock options expiring on June 9, 2016, and (c) 18,750 Common Shares issuable upon the exercise of stock options expiring on August 17, 2017, representing, in the aggregate, approximately 2.94% of the total issued and outstanding Common Shares, calculated on a partially diluted basis assuming the exercise of the convertible securities described in items (b) and (c) above. In aggregate, CTSA and its joint actor own 10,181,103 Common Shares (13,216,169 including Common Shares issuable upon the exercise or conversion of the securities described above), representing approximately 23.27% of the total issued and outstanding Common Shares (approximately 28.24% on a partially diluted basis assuming the exercise of the convertible securities described above).

Panedile Argentina S.A.I.C.F. E.I. acquired 1,100,000 Units in the Private Placement and now owns (a) 4,257,896 Common Shares, (b) 1,100,000 Common Shares issuable upon the exercise of Common Share purchase warrants expiring on September 10, 2015, and (c) 1,578,948 Common Shares issuable upon the exercise of Common Share purchase warrants expiring on June 18, 2014, representing, in the aggregate, approximately 14.94% of the total issued and outstanding Common Shares, calculated on a partially diluted basis assuming the exercise of the convertible securities described in items (b) and (c) above.

Mr. Eduardo Martin acquired 1,300,000 Units in the Private Placement and now owns (a) 3,404,558 Common Shares, (b) 1,300,000 Common Shares issuable upon the exercise of Common Share purchase warrants expiring on September 10, 2015, and (c) 263,158 Common Shares issuable upon the exercise of Common Share purchase warrants expiring on June 18, 2014, representing, in the aggregate, approximately 10.96% of the total issued and outstanding Common Shares, calculated on a partially diluted basis assuming the exercise of the convertible securities described in items (b) and (c) above.

The above purchasers acquired and intend to hold the securities for investment purposes. The purchasers, depending on market and other conditions, may increase their beneficial ownership, control or direction over the Common Shares or other securities of Minsud through market transactions, private agreements, treasury issuances, exercise of convertible securities or otherwise, in accordance with applicable securities regulations. Depending on market or other conditions, the purchasers may sell all or a portion of the Common Shares.

Early warning reports with additional information with respect to the above will be filed on SEDAR at www.sedar.com.

About Minsud Resources Corp.:

Minsud is a mineral exploration company focused on exploring its flagship Chita Valley Project, primarily for gold, silver and copper in the Province of San Juan, as well as advancing its La Rosita gold and silver project at the Deseado Massif - Santa Cruz Province, in the Republic of Argentina. The Company also holds a 100% owned portfolio of selected early stage prospects, approximately 60,000 hectares distributed within the Provinces of Santa Cruz, Chubut and Rio Negro, in the Republic of Argentina.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

  • Minsud Resources Corp.
    Carlos Massa
    President and Chief Executive Officer
    +54-11-4328-4067
    cmassa@minsud.com

    Minsud Resources Corp.
    Mike Johnston
    416-479-4466
    mike@minsud.com