Los Andes Copper Ltd (TSX-V:LA) announced plans to raise $10 million to advance its flagship Vizcachitas project in Chile.
The company entered into an agreement with a syndicate of underwriters led by BMO Capital Markets (NYSE:BMO), which have agreed to buy on bought deal basis 800,000 common shares at a price of $12.55 per share.
The underwriters have the option, exercisable at the offering price, to purchase up to an additional 15% of the offering to cover over-allotments, according to a release from Los Andes.
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Vizcachitas is located along Chile’s most prolific copper belt. It is one of the largest copper deposits in the Americas not controlled by the majors and Los Andes believes it will be Chile’s next major copper mine.
Net proceeds from the offering will also be used to cover studies and drilling expenses and for working capital, Los Andes said.
The offering is expected to close on or about January 30, 2023.
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