Andean American Gold Corp. is pleased to announce that, pursuant to an agreement with Trafigura Beheer B.V. (“Trafigura”) as disclosed on March 31, 2010, and which agreement was subsequently assigned to Trafigura’s wholly-owned subsidiary, Urion Mining International B.V. (“Urion”) on September 30, 2010, Urion has purchased 19,574,605 common shares of the Company at the agreed Discounted Market Price of CDN$0.77 per share, calculated using the closing share price of Andean’s common shares on the TSX-V on January 28, 2011. The aggregate purchase price for the common shares was CDN$15,072,445.85.
Andean American and Trafigura, a privately-held international commodity trader, established a strategic relationship in March 2010 which included Trafigura’s initial equity investment of CDN$3,000,000 in the Company and long-term off-take agreements for the sale of the Invicta Project’s copper, lead and zinc concentrates, as well as an agreement to acquire up to an additional 16% of the Company’s common shares by way of private placement.
“We are very pleased with Trafigura’s demonstrated on-going confidence in the Invicta Project and with the stability which this relationship provides for the Company. The funds raised through this purchase will be used primarily to advance the Invicta Project towards production and will position us well to expand the project through further exploration drilling once the land use agreements are finalized,” said David Rae, President and CEO of Andean American.
As at January 31, 2011, Andean American had 122,341,287 common shares outstanding. Following the purchase of these 19,574,605 options, the Company now has 141,915,892 common shares outstanding, of which Trafigura holds 27,574,605 shares, or 19.43%. The issuance of the shares remains subject to a TSX-V four month hold.