AndeanGold Announces Closing of $645,000
Private Placement
AndeanGold Ltd. ("the Company" or "AndeanGold")
(TSX Venture Exchange: AAU) is pleased to announce that the Company has
increased its previously announced non-brokered private placement (the
"Placement") (news releases of July 6, 2012 and July 16, 2012) from
$500,000 to $645,000 and has closed (the "Closing') the final tranche of
the Placement. Under the Placement, the Company issued an aggregate of
12,900,000 units ("Units") at a price of $0.05 per Unit. Each Unit
consists of one common share and one-half share purchase warrant. Each warrant
will entitle the holder to purchase one additional common share of the Company
for a period of eighteen months from the respective Closing of each tranche at
a price of $0.10 per share.
Pursuant to the second tranche of the Placement, the Company issued an
aggregate of 5,700,000 Units to raise aggregate gross proceeds of
$285,000. The first tranche of the Placement closed on July 16, 2012 and
involved the issuance of an aggregate of 7,200,000 Units to raise aggregate gross
proceeds of $360,000.
In accordance with applicable securities laws and the
policies of the TSX Venture Exchange, the Company paid finders' fees and
expenses on portions of the Placement in the aggregate amount of $35,700 cash
and issued 714,000 warrants, each such warrant entitling the holder to acquire
one additional common share of the Company at a price of $0.10 for a period of
eighteen months from the respective Closing of each tranche.
All securities issued in the Placement will be subject
to a four-month hold period from the Closing of the Placement.
The Placement remains subject to the receipt of final acceptance from the TSX
Venture Exchange.
The proceeds of the Placement will be used principally
to fund future exploration programs on the Company's Urumalqui
Project in Peru and for general working capital purposes.
Mr. Anthony F. Ciali,
President & CEO stated, "Given the difficult financial market
conditions that have persisted for most of 2012, especially for junior mining
companies, we are extremely pleased to have been able to finalize this
Placement. Of particular note, over half of the Placement was subscribed to by
new Peruvian investors."
About AndeanGold
Ltd:
AndeanGold Ltd. is engaged in the acquisition,
exploration and potential development of primarily precious metals properties,
principally in Peru and Ecuador. The focus of the Company's exploration
activities is presently in advancing its Urumalqui
Project, as well as pursuing mineral property acquisitions, in Peru. In Ecuador,
the Company's activities have been limited to administrative and legal matters
due to the Mining Mandate issued by the Ecuador Constituent Assembly on April
18, 2008. In November 2009, President Correa signed the Mining Regulations into
law pursuant to the requirements of the new Mines Law, which was passed in
January 2009. This was the final legal precursor to the re-initiation of
exploration and mining development in Ecuador. The Company has been issued new
mining titles under the new Mines law to its three key Ecuadorian projects and
has filed the requisite documents with the Ministry of Non-Renewable Natural
Resources and Ministry of Environment in support of the Company's request to
renew exploration programs on its key projects in Ecuador. The Company is
actively working with government officials to achieve this end.