Vancouver, B.C., July 8, 2011 - Panoro Minerals Ltd. (TSXV: PML, Lima: PML, Frankfurt: PZM) ("Panoro" or the "Company") Panoro is pleased to announce that the Company has completed the second and final tranche of the previously announced brokered private placement to raise an additional $352,980 through the placement of 784,400 units at a price of $0.45 per unit. Each unit consists of one share and one half of a share purchase warrant, each full warrant exercisable over 18 months at a price of $0.60. The total gross proceeds from the two tranches amounts to approximately $7.8 million. Insiders acquired 500,000 units of the Financing. The common shares comprising the units and any common shares issued upon the exercise of the warrants are subject to a four month hold period expiring on November 6, 2011.
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.
The net proceeds are intended for the continued advancement of the Cotabambas Copper/Gold project including an expanded drill program, preliminary metallurgical test work, expanded magnetic and IP surveys, and an updated NI 43-101 compliant resource estimate. In addition funds are allocated for an initial drill program at the Kusiorcco Copper Project, and for general corporate purposes. The private placement remains subject to the approval of the TSX Venture Exchange.
The President and Chief Executive Officer of Panoro, Luquman Shaheen, stated "The completion of this financing provides Panoro with a strong cash and working capital position which will allow the Company to complete our proposed exploration program at Cotabambas targeting a significant increase in the resource."
Since November 2010, Panoro has completed 2,800 m of its Phase one, 5,500 m drilling program and is in the process of completing magnetic and induced polarization geophysical surveys at Cotabambas. An additional twenty nine drillholes totaling an estimated 21,500 m of step out drilling are planned at the main Ccalla Deposit and between the main Ccalla zone and the Azulccaca zone 900 metres to the south. Drill mobilization is scheduled for July 11, 2011.
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:
90 million tonnes @ 0.77% Cu and 0.42 g/t Au (0.4% Cu cutoff, SRK 2007)
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: email@example.com firstname.lastname@example.org
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.