TSX.V: AMO
VANCOUVER,
Feb. 20, 2014 /CNW/ - Altan Rio
Minerals Limited ("Altan Rio" or the "Company") announces that
it has reached agreement with a number of related party and
non-related party creditors to settle debt in the total amount of
CA$1,429,259 by the issuance of 20,417,983 common shares of the
Company at a deemed price of $0.07
per share (the "Shares for Debt Transaction"), a condition
precedent of its private placement with the European Bank for
Reconstruction and Development ("EBRD") originally announced
January 8, 2014.
The Company is continuing with its private
placement with EBRD originally announced January 8, 2014. Under the private placement,
EBRD will purchase 16,666,000 common shares of the Company at
$0.06 per share for gross proceeds of
CA$999,960 pursuant to the first tranche subscription (the "First
Tranche Subscription") of the larger potential investment
previously announced. Following completion of the First
Tranche Subscription it is anticipated that EBRD will hold
approximately 18.69% of the issued and outstanding common shares of
the Company, taking into account the common shares expected to be
issued in connection with the Shares for Debt Transaction.
Both of the foregoing transactions are subject to
the approval of the TSX Venture Exchange (the "Exchange"). In
addition to Exchange approval, the First Tranche Subscription
remains subject to certain other conditions precedent, including
completion of the Shares for Debt Transaction and the Company
obtaining certain required government documentation related to its
exploration activities in Mongolia.
Proceeds of the First Tranche Subscription are
expected to be used to advance the Company's exploration activities
in Mongolia and provide working
capital.
The Company also announces that it has granted
to directors, officers, consultants and management of the Company,
stock options (the "Options") to purchase a total of 1,420,000
common shares at a price of $0.10 per
common share. The Options are exercisable for a period of 5 years
ending February 20th, 2019 and have
been granted in accordance with the terms of the Company's current
stock option plan.
About Altan
Rio
Altan Rio, founded in 2007, is based
in Vancouver BC, Canada. Using innovative exploration targeting
techniques and leveraging long-term in-country experience, the
company explores large-scale gold and copper projects in
Mongolia, one of the world's most
prospective mineral regions. The Company's license holdings in
Mongolia, which total more than
103,341 hectares (255,361 acres), contain significant zones of
newly identified primary gold and copper mineralization across a
very large area of unexplored ground.
On behalf of Altan Rio Minerals Limited,
"Evan Jones"
Evan Jones, President &
CEO
This press release may contain forward
looking statements including those describing Altan Rio's future plans and the expectations of
management that a stated result or condition will occur. Any
statement addressing future events or conditions necessarily
involves inherent risk and uncertainty. Actual results can differ
materially from those anticipated by management at the time of
writing due to many factors, the majority of which are beyond the
control of Altan Rio and its
management.
Neither the 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.
SOURCE Altan Rio Minerals Limited