Vancouver, B.C., June 13, 2011 - Panoro Minerals Ltd. (TSXV: PML, Lima: PML, Frankfurt: PZM) ("Panoro") is pleased to announce it has entered into an agreement with M Partners Inc. (the "Agent") to raise, on a best-efforts private placement that will include Canaccord Genuity, a maximum of $8.0 million through the issuance of units of the Company at a price of $0.45 per unit. Each unit of the Company shall consist of one common share and one-half common share purchase warrant, each whole warrant exercisable to acquire one additional common share at a price of $0.60 per common share, for a period of 18 months after the closing date of the private placement.
HudBay Minerals Inc. (TSX: HBM, NYSE: HBM) has agreed to purchase up to $4 million of the units. The President and Chief Executive Officer of Panoro, Luquman Shaheen, stated "We welcome HudBay's investment and are pleased with their confidence in the value, quality and potential of our projects."
The net proceeds are intended to be used for continued development of Cotabambas including drill program, preliminary metallurgical testing, expanded magnetic survey, IP survey, and updated 43-101. As well, initial drill program at Kusiorcco, and for general corporate purposes.
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. 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 exercisable at $0.45 per share, for a period of 18 months from the closing date of the offering.
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:||1154 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.