Minsud Resources Corp.
TSX VENTURE : MSR

Minsud Resources Corp.

February 25, 2014 15:22 ET

Minsud Announces Early Warning Update for CTSA

TORONTO, ONTARIO--(Marketwired - Feb. 25, 2014) - Minsud Resources Corp. (TSX VENTURE:MSR) ("Minsud" or the "Company") announces that Compañía de Tierras Sud Argentino S.A. ("CTSA"), an insider and control person of the Company, acquired 3,800,000 units (each, a "Unit") in connection with the private placement of the Company previously announced on February 21, 2014 (the "Private Placement"). The Units were sold 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 which 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.

CTSA now owns (a) 13,200,300 Common Shares, (b) 3,800,000 Common Shares issuable upon the exercise of Common Share purchase warrants expiring on February 21, 2016, (c) 1,200,000 Common Shares issuable upon the exercise of Common Share purchase warrants expiring on September 10, 2015, (d) 526,316 Common Shares issuable upon the exercise of Common Share purchase warrants expiring on June 18, 2014, and (e) 790,000 Common Shares issuable pursuant to a put and call option agreement with Minsud, representing, in the aggregate, approximately 32.15% 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), (d) and (e) above. CTSA's Vice President, Diego Eduardo Perazzo, 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, (c) 25,000 Common Shares issuable upon the exercise of stock options expiring on August 17, 2017 and (d) 40,000 Common Shares issuable upon the exercise of stock options expiring on September 10, 2018, representing, in the aggregate, approximately 2.45% 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. In aggregate, CTSA and its joint actor own 13,981,103 Common Shares (20,862,419 including Common Shares issuable upon the exercise or conversion of the securities described above), representing approximately 25.71% of the total issued and outstanding Common Shares (approximately 34.05% on a partially diluted basis assuming the exercise of the convertible securities described above).

CTSA intends to hold the securities for investment purposes. Depending on market and other conditions, CTSA may increase its 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, CTSA may sell all or a portion of the Common Shares.

An early warning report with additional information with respect to the above has been 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.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION:

This news release includes certain information that may constitute "forward-looking information" under applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, statements about strategic plans, spending commitments, future operations, results of exploration, anticipated financial results, future work programs, capital expenditures and objectives. Forward looking information is necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking information, including the risks identified in the Company's TSXV Filing Statement dated April 27, 2011 under the heading "Risk Factors" as available on www.sedar.com. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. All forward-looking information contained in this press release is given as of the date hereof and is based upon the opinions and estimates of management and information available to management as at the date hereof. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.

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