Petaquilla Minerals Ltd. (the "Company")
(TSX:PTQ - News)(OTC.BB:PTQMF - News)(Frankfurt:P7Z - News) announces that the
Company has closed its previously announced non-brokered private placement
offering of $32,000,000 Canadian.
The net proceeds from the sale of
16,000,000 units at $1.00 Canadian per unit will be applied to the Company's
secured notes balance. The net proceeds from the sale of 16,000,000
subscription receipts at $1.00 Canadian per subscription receipt, if approved
by shareholders, in combination with available capital will be used to redeem
the Company's remaining secured notes balance.
The closing of the private placement and
the subsequent settlement of notes will allow the Company to focus efforts on
the implementation of its strategic priorities, namely developing additional
ounces at the Molejon gold deposit, advancing the Molejon heap leach project, accelerating exploration work
on the Petaquilla Mining District and advancing the
spin-out of its infrastructure subsidiary, Panamanian Development and
Infrastructure Ltd.
With respect to the private placement,
each unit consists of one common share and one common share purchase warrant,
entitling the holder to purchase one additional common share of the Company
for a period of three years at a price of $1.45 Canadian per share. The
warrants contain an expiry acceleration provision as detailed in the
Company's news release of December 21, 2010.
Each subscription receipt will be
converted into one unit upon receipt of shareholder approval of the offering
on or before February 8, 2011. If shareholder approval of the offering is not
obtained on or before February 8, 2011, the proceeds from the sale of
subscription receipts or $16,000,000 Canadian will be returned without
deduction to purchasers of subscription receipts. The Company will be holding
a Special Meeting of Shareholders on January 31, 2011, to vote on the
approval of the private placement of subscription Receipts.
All securities distributed in the first
tranche of the private placement are subject to a four-month plus one day
hold period expiring May 1, 2011. All securities distributed in the second
tranche of the private placement are subject to a four-month plus one day
hold period expiring May 8, 2011.
In connection with the closing of the
private placement of units, the Company has issued 788,815 finders' options
and paid finders' fees in the amount of $788,815 Canadian. In connection with
the closing of the private placement of subscription receipts, if approved by
shareholders, the Company will issue further finders' options of 779,934 and
finders' fees of $779,934 Canadian. Each finder's option will entitle the
holder to acquire one unit at a price of $1.00 Canadian per unit for a period
of three years from closing of the private placement.
About Petaquilla
Minerals Ltd. - Petaquilla Minerals Ltd. is a gold
producer operating its gold processing plant at its 100% owned Molejon Gold Project in Panama. Anticipated throughput
for the project during the first year of commercial production is estimated
to be 2,200 tonnes per day. Commercial production
commenced January 8, 2010. The Molejon mine site is
located in the south central area of the Company's 100% owned 842 square kilometre concession lands, a region known historically
for gold content.
On behalf of the Board of Directors of
PETAQUILLA MINERALS LTD.
Joao C. Manuel, Chief Executive Officer
No stock exchange has approved or
disapproved the information contained herein.
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