OroAndes Resource Corp.
TSX VENTURE : OAR

OroAndes Resource Corp.

January 25, 2011 14:43 ET

OroAndes Announces Brokered Private Placement

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 25, 2011) -

THIS PRESS RELEASE IS NOT FOR DISTRIBUTION IN THE UNITED STATES OR TO U.S. NEWS AGENCIES

OroAndes Resource Corp. (the "Company") (TSX VENTURE:OAR) announces that it has engaged IBK Capital Corp. (the "Agent") in connection with a proposed brokered private placement of up to 10,000,000 units (the "Units") of the Company at a price per Unit of $0.20 for aggregate proceeds of up to $2,000,000. Each Unit will consist of one common share in the capital of the Company and one transferable share purchase warrant (a "Warrant"). Each Warrant entitles the holder to purchase one additional common share at a price of $0.25 per share and is exercisable for a period of two years from the closing of the offering. The Agent will receive a cash commission of 9% of the proceeds of the financing. The Agent will also receive an option to acquire such number of common shares of the Company as is equal to 10% of the Units sold under the offering at a price of $0.20 per share for a period of two years from the closing of the offering.

The Company also announces that as a result of recent interpretation of exploration data, the Kilometer 26 Project has been expanded by staking nine additional claims and now encompasses 9,819 hectares (24,263 acres). It is centred on a strong magnetic anomaly indicated on the Quest West helicopter-borne magnetic and electromagnetic survey flown for the British Columbia government (Geoscience BC) and published January, 2009. The magnetic anomaly is circular in feature and is more than five kilometres in diameter, suggesting a large ultramafic body. The Property is easily accessible by a major industrial road and logging roads, is bisected by a power line that forms part of the British Columbia power grid and is adjacent to a branch line of the Canadian National Railway.

In accordance with applicable securities legislation, all securities issued will be subject to a hold period of four months and a day from the date of completion of the offering. The proceeds of the private placement will be used by the Company to fund exploration at its Kilometer 26 Project located in the province of British Columbia and for general and working capital purposes.

A 60% interest in the Kilometer 26 Project is under option to OroAndes Resource Corp. from Eastfield Resources Ltd. (TSE-V:ETF). OroAndes may earn its interest by spending $1,575,000 on exploration, issuing 275,000 shares and making $107,500 in payments by September 25, 2013.

J.W. (Bill) Morton P.Geo, a Qualified Person for the purposes of National instrument 43-101, has read and taken responsibility for this news release.

This news release contains certain statements that may be deemed "forward-looking statements". Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. Although OroAndes believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in forward looking statements. Forward looking statements are based on the beliefs, estimates and opinions of OroAndes' management on the date the statements are made. OroAndes Resource Corp. undertakes no obligation to update these forward-looking statements in the event that management's beliefs, estimates or opinions, or other factors, should change, except as required by law.

THIS PRESS RELEASE, REQUIRED BY APPLICABLE CANADIAN LAWS, IS NOT FOR DISTRIBUTION TO U.S. NEWS SERVICES OR FOR DISSEMINATION IN THE UNITED STATES, AND DOES NOT CONSTITUTE AN OFFER OF THE SECURITIES DESCRIBED HEREIN. THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS, AND MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES OR TO U.S. PERSONS UNLESS REGISTERED OR EXEMPT THEREFROM.

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 news release.

Contact Information

  • OroAndes Resource Corp. - Head Office
    Sandy MacDougall
    President and Chief Executive Officer
    604-662-8186
    604-662-8170 (FAX)
    www.oroandes.com