Vancouver, B.C., July 4, 2011 - Panoro Minerals Ltd. (TSXV: PML, Lima: PML, Frankfurt: PZM) ("Panoro") Panoro is pleased to announce that the company has completed the first tranche of the brokered private placement of 16,441,724 units at a price of $0.45 per unit whereby each unit includes 1 share and ½ share purchase warrant exercisable over 18 months at a price of $0.60. The gross proceeds from the financing amount to $7.4 million.
MPartners has acted as lead agent of the brokered private placement which includes Canaccord Genuity. The Company has agreed to pay the Agent a cash fee equal to up to 7 per cent of the gross proceeds from the offering and an Advisory Fee. As additional compensation, the Agent will be issued compensation options entitling the Agent to purchase that number of common shares of the company equal to up to 7 per cent of the number of the common shares sold under the offering.
HudBay Minerals Inc. (TSX: HBM, NYSE: HBM) has subscribed for 8,880,000 units. The President and Chief Executive Officer of Panoro, Luquman Shaheen, stated "We look forward to expanding the exploration program at Cotabambas and are pleased to have HudBay as an important shareholder who sees the potential of Panoro's projects and shares Panoro's confidence in the future for the copper market and in the importance of the Peruvian mining sector"
Panoro's strategic focus is to move its advanced stage Copper and Copper/Gold projects to the feasibility and development stages and to explore its other projects. Panoro's strong cash position puts the company in a good position to continue developing its significant portfolio of exploration projects. The Company's large portfolio includes the advanced Cotabambas Copper-Gold and Antilla Copper-Molybdenum Projects which include NI 43-101 inferred level resources of:
|Cotabambas:||90 million tonnes @ 0.77% Cu and 0.42 g/t Au (0.4% Cu cutoff, SRK 2007)|
|Antilla:||154 million tonnes @ 0.47% Cu and 0.009% Mo (0.25% Cu cutoff, AMEC 2009)|
In addition to the exploration program at the Cotabambas Project, the Company will also be carrying out exploration work at its Antilla Copper-Molybdenum Project, Kusiorcco Copper Project and Cochasayhuas Gold Project in 2011. Panoro has ten other exploration properties in Peru and is currently evaluating investment alternatives including joint ventures.
Panoro's significant portfolio of projects is located primarily in the south-eastern region of Peru. This region contains a number of important copper and copper/gold deposits including Xstrata's Las Bambas and Antapaccay Copper Projects and the Tintaya Copper Mine. In September 2010, Xstrata announced US$5.7 billion of investment to develop the Las Bambas and Antapaccay projects. The region also includes the Haquira Copper Project, recently acquired by First Quantum Minerals, and the Constancia Copper Project, recently acquired by Hudbay Minerals.
On behalf of the Board of Panoro Minerals Ltd.
Luquman Shaheen, M.B.A., P.Eng., P.E.
President, CEO and Director
FOR FURTHER INFORMATION, CONTACT:
Renmark Financial Communications
Barbara Komorowski or Laurence Lachance
Phone 514.939.3989 or 416.644.2020
Email: firstname.lastname@example.org email@example.com
This release was prepared by management of the Company who takes full responsibility for its contents. Neither 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.