June 9, 2017 – Vancouver, British Columbia – Candelaria Mining Corp. (“Candelaria” or the “Company”) is pleased to announce that it has closed its previously announced private placement of 10,120,000 common shares of the Company to Agnico Eagle Mines Limited (“Agnico”) for total gross proceeds of C$9,765,800 (the “Private Placement”). As a result of the Private Placement, Agnico now owns approximately 9.95% of the common shares of Candelaria. For additional information regarding the Private Placement, please see the Company’s news release dated June 6, 2017.
Candelaria intends to use the net proceeds of the investment for infill and definition drilling to enhance the classification and extension of Caballo Blanco’s current mineral resource, exploration of highly prospective targets within the Caballo Blanco claim area, further technical and optimization studies, payment of final amounts owed to Alio Gold Inc. (formerly known as Timmins Gold Corp.) in connection with the acquisition of the Caballo Blanco gold project and for general working capital and corporate needs.
All shares issued pursuant to the Private Placement are subject to a statutory four month plus one day hold period expiring on October 10, 2017.
Candelaria Mining is a Canadian-based gold development and exploration company with a portfolio of highly prospective projects in Mexico, one of the world’s best mining jurisdictions. Candelaria’s 100% owned Caballo Blanco Project hosts NI 43-101 Indicated Resources of 521,000 ounces of gold and 2,170,000 ounces of silver (31,220,000 tonnes grading 0.52 g/t gold and 2.16 g/t silver) and Inferred Resources of 95,000 ounces of gold and 590,000 of ounces silver (8,630,000 tonnes grading 0.34 g/t gold and 2.14 g/t silver). Potential exists to increase these estimated resources through continued drilling and exploration. For more information on resource estimates, please see the Company’s news release dated May 8, 2017.
ON BEHALF OF THE BOARD,
Chief Executive Officer
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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.
This news release contains certain information that may constitute forward-looking information or forward-looking statements under applicable Canadian securities legislation (collectively, “forward-looking information”), including but not limited to the exploration potential at the Caballo Blanco Project, the intended use of proceeds from the Private Placement and future exploration plans of Candelaria. This forward-looking information entails various risks and uncertainties that are based on current expectations, and actual results may differ materially from those contained in such information. These uncertainties and risks include, but are not limited to, the strength of the global economy; the price of gold; developmental, funding and liquidity risks; the degree to which mineral resource estimates are reflective of actual mineral resources; the degree to which factors which would make a mineral deposit commercially viable are present; the risks and hazards associated with mining operations; and the ability of Candelaria to fund its capital requirements and exploration and development activities.