VANCOUVER, BRITISH COLUMBIA--(Marketwired - Jan. 15, 2016) - Anthem United Inc. (TSX VENTURE:AFY) ("Anthem" or the "Company") announces that, further to its news releases dated December 10, 2015 and January 8, 2016, the Company has closed, subject to final approval of the TSX Venture Exchange, the second tranche (the "Second Tranche") of its non-brokered private placement financing (the "Private Placement"). The Second Tranche comprises 616,666 units of the Company (the "Units") at a price of CDN$0.24 per Unit for aggregate gross proceeds of approximately CDN$148,000. Each Unit consists of one common share of the Company (a "Common Share") and one-half of one common share purchase warrant of the Company (each whole warrant being a "Warrant"). Each whole Warrant will entitle the holder to acquire one additional Common Share at a price of CDN$0.35 per Common Share for a period of five years following the date of the closing of the Second Tranche. All securities issued under the Second Tranche are subject to a four month hold period expiring on May 16, 2016.
The Company expects to use the proceeds raised from the Second Tranche to fund general and operating working capital, including the purchase of gold-bearing feed for processing at the Company's Koricancha Mill in Peru. The Company expects to close the third tranche of the Private Placement in February 2016. Anthem reserves the right to increase the size of the Private Placement, subject to approval by the TSX Venture Exchange.
About Anthem United Inc.
Anthem ( www.anthemu.com ) is focused on building a precious metals producing company through the acquisition and development of silver and gold mineral assets. The Company is currently advancing the operation of the 350 tonne per day Koricancha Mill in Peru, in which it owns a 75% interest. The Company's joint venture partner, EMC Green Group S.A., owns the remaining 25%, subject to an 8% cost of sales royalty payable to Anthem, and is the operator of the Koricancha Mill. The Koricancha Mill produces gold for its own account by processing gold-bearing material purchased from small scale and artisanal miners in Peru.
In May 2015, Anthem and EMC announced the acquisition of a second 350 tonne per day gold mill and associated mineral claims, collectively the "Chaparra Assets" (see news release dated May 28, 2015). The acquisition of the Chaparra Assets is expected to close in the first quarter of 2016, subject to financing.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
The Private Placement is exempt from prospectus and registration requirements of applicable securities laws. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or any state securities laws, and accordingly, may not be offered or sold within the United States or to "U.S. Persons", as such term is defined in Regulation S promulgated under the U.S Securities Act ("U.S. Persons"), except in compliance with the registration requirements of the U.S. Securities Act and applicable state securities requirements or pursuant to exemptions therefrom. This news release shall not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States.
Cautionary Note Regarding Forward-Looking Statements
This release contains certain "forward looking statements" and certain "forward-looking information" as defined under applicable Canadian and U.S. securities laws. Forward-looking statements can generally be identified by the use of forward-looking terminology such as "may", "will", "expect", "intend", "estimate", "anticipate", "believe", "continue", "plans" or similar terminology. Forward-looking statements include, but are not limited to, statements relating to the anticipated size of the Private Placement, the receipt of final approval of the Second Tranche from the TSX Venture Exchange, the expected use of proceeds from the Second Tranche, the expected completion of the third tranche of the Private Placement and the anticipated closing of the acquisition of the Chaparra Assets. Forward-looking statements are based on forecasts of future results, estimates of amounts not yet determinable and assumptions that, while believed by management to be reasonable at the time of such forecasts, are inherently subject to significant business, economic and competitive uncertainties and contingencies. Certain of the statements made herein by the Company are forward-looking and subject to various risks and uncertainties, both known and unknown, many of which are beyond the ability of the Company to control or predict. Known and unknown factors could cause actual results to differ materially from those projected in the forward-looking statements. Forward-looking information is subject to known and unknown risks and uncertainties that may cause the Company's actual results, performance or achievements to be materially different from those expressed or implied by such forward-looking information, and are developed based on assumptions about such risks, uncertainties and other factors set out here in, including but not limited to the inherent risks involved in the exploration and development of mineral properties, the uncertainties involved in interpreting drill results and other exploration data, the potential for delays in exploration or development activities, mine development and production costs, future production levels, the geology, grade and continuity of mineral deposits, the possibility that future exploration, development or mining results will not be consistent with the Company's expectations, accidents, equipment breakdowns, title matters, labour disputes or other unanticipated difficulties with or interruptions in production and operations, fluctuating metal prices, unanticipated costs and expenses, uncertainties relating to the availability and costs of financing needed in the future, the inherent uncertainty of production and cost estimates and the potential for unexpected costs and expenses, commodity price fluctuations, currency fluctuations, regulatory restrictions, including environmental regulatory restrictions and liability, competition, loss of key employees, and other related risks and uncertainties. The Company undertakes no obligation to update forward-looking information except as required by applicable law. Such forward-looking information represents management's best judgment based on information currently available. No forward-looking statement can be guaranteed and actual future results may vary materially. Accordingly, readers are advised not to place undue reliance on forward-looking statements or information.
