TORONTO, ONTARIO--(Marketwired - April 17, 2013) - Apogee Silver Ltd. ("Apogee" or the "Company") (TSX VENTURE:APE) is pleased to announce that, after successfully closing a private placement offering for aggregate gross proceeds of $3,518,500 on April 4, 2013 (the "Initial Offering"), it has now closed a second tranche of the offering (the "Second Tranche"), in which an additional three company employees purchased 900,000 units (each, a "Unit") of the Company at a price of $0.05 per Unit for aggregate gross proceeds of $45,000. The participation was on the same terms as the Initial Offering and is subject to final approval from the TSX Venture Exchange (the "TSXV").
In the Initial Offering and the Second Tranche, insiders and employees, including the Chief Executive Officer, the Chairman, each of the directors and certain employees of the Company, purchased a total of 10,740,000 Units for aggregate proceeds of $537,000.
Chief Executive Officer of Apogee, Neil Ringdahl, stated: "We are pleased to have extended the offering after certain members of our management team at site expressed a strong desire to participate in the private placement as well, which further highlights the strong commitment of the team towards the Company's success."
Each Unit issued in the Second Tranche consists of one common share of the Company (a "Common Share") and 0.6 of a purchase warrant (a "Warrant"), with each whole Warrant entitling its holder to purchase one Common Share at an exercise price of $0.10 per Common Share for a period of 36 months following the closing of the Second Tranche offering. The terms of the Second Tranche mirrored the terms of the Initial Offering.
In order to maximize proceeds from both the Initial Offering and the Second Tranche offering, the Company entered into agreements dated April 4, 2013 with certain service providers (the "Service Providers") of the Company to settle debts owed by the Company to the Service Providers through the issuance of Units rather than cash payments. In accordance with the approval received from the TSXV, the Company has issued an aggregate of 3,720,000 Units to the Service Providers, in lieu of $186,000 that was otherwise owing.
All of the securities issued in connection with the Second Tranche offering are subject to resale restrictions which expire on August 17, 2013. The Second Tranche offering remains subject to final approval from the TSXV.
The Company intends to use net proceeds of the Initial Offering and the Second Tranche to continue the development of its key projects situated in Bolivia and for working capital purposes.