pcNewsWire – Jaguar Mining Inc. (TSX: JAG) has closed its previously announced non-brokered private placement of 17,624,728 common shares at CDN $0.44 per share for gross proceeds of CDN $7,754,800.32 or approximately US $5.9 million.
Eric Sprott, through 2176423 Ontario Ltd., acquired ownership of 4,545,455 common shares for total consideration of $2,000,000.20. Sprott now holds directly and indirectly 64,300,596 shares (approximately 19.8% of the outstanding Shares).
Jaguar Mining Announces Closing of Non-Brokered Private Placement
NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
Toronto, Canada, June 15, 2017 – Jaguar Mining Inc. (“Jaguar” or the “Company”) (TSX:JAG) today announced that has closed its previously announced non-brokered private placement financing (the “Offering”). Pursuant to the Offering, the Company has issued 17,624,728 common shares (the “Shares”) at a price of C$0.44 per share for gross proceeds of approximately US$5.9 million. The Shares are subject to a four-month hold period.
Net proceeds from the sale of the Shares will be used for continuing capital investment programs and working capital needs at the Company’s Brazilian operations located in Minas Gerais, Brazil.
The Offering constitutes a related party transaction within the meaning of Multilateral Instrument 61-101 (“MI 61-101”) as certain insiders of the Company subscribed for Shares. The Company is relying on the exemptions from the valuation and minority shareholder approval requirements of MI 61-101 contained in sections 5.5(a) and 5.7(1)(a) of MI 61-101, as the fair market value of the participation in the Offering by insiders does not exceed 25% of the market capitalization of the Company, as determined in accordance with MI 61-101. The Company did not file a material change report more than 21 days before the closing of the Offering as the details of the aforementioned insiders’ participation were not settled until shortly prior to the closing of the Offering, and the Company wished to close the Offering on an expedited basis.
About Jaguar Mining Inc.
Jaguar Mining Inc. is a Canadian-listed junior gold mining, development, and exploration company operating in Brazil with three gold mining complexes, and a large land package with significant upside exploration potential from mineral claims covering an area of approximately 191,000 hectares. The Company’s principal operating assets are in the Iron Quadrangle, a prolific greenstone belt in the state of Minas Gerais and include the Turmalina Gold Mine Complex and Caeté Gold Mine Complex (Pilar and Roça Grande mines, and Caeté plant) which combined, produce more than 95,000 ounces of gold annually. The Company also owns the Paciência Gold Mine Complex, which has been on care and maintenance since 2012. Additional information is available on the Company’s website at www.jaguarmining.com.
The Shares have not been and will not be registered under the U.S. Securities Act or any state securities laws, and may not be offered or sold in the United States absent registration or an applicable exemption from such registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy the common shares in the United States or in any jurisdiction in which such offer, sale or solicitation would be unlawful.
For further information please contact:
President & Chief Executive Officer
Vice President, Investor Relations