BUENOS AIRES (dpa-AFX) - AbraSilver Resource Corp. has entered into subscription agreements in respect of a strategic C$20 million non-brokered private placement of AbraSilver common shares with Kinross Gold Corporation (KGC, K.TO) and an affiliate of Central Puerto (CEPU) at a subscription price of C$0.40 per share. AbraSilver Resource will issue an aggregate of 50 million shares at a subscription price of C$0.40 per share. Kinross and Central Puerto will each invest C$10 million, resulting in aggregate gross proceeds of C$20 million to AbraSilver Resource. Upon closing of the private placement, Kinross and Central Puerto will each own approximately 4.0% of the outstanding common shares on an undiluted basis.
Upon closing of the private placement, AbraSilver will enter into separate investor rights agreements with each of Kinross and Central Puerto, which provide, among other things, the grant of standard anti-dilution and equity participation rights.
Also, AbraSilver and Kinross aim to form a regional partnership to jointly explore for and acquire new projects in Argentina focused on silver, gold, and copper. Upon closing of the private placement, AbraSilver will grant Kinross a Right of First Offer to acquire at least 50% of newly staked or acquired projects in Argentina beyond Diablillos.
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