Canadian Warrants

Andina closes $25-million bought-deal financing
2009-12-02 09:37 ET - News Release

Mr. George Bee reports

Andina Minerals Inc. has completed the previously announced financing on a bought-deal basis, with a syndicate of underwriters co-led by BMO Capital Markets and Haywood Securities Inc., and including Canaccord Capital Corp. and RBC Dominion Securities Inc. Under the amended terms of the financing announced in Stockwatch on Nov. 23, 2009, Andina issued a total of 12.5 million units, each unit consisting of one common share and one common share purchase warrant, at a price of $2 per unit for gross proceeds of $25-million. Each common share purchase warrant entitles the holder to purchase one common share of the company at a price of $2.25 until June 2, 2012. The warrants are expected to commence trading on the TSX Venture Exchange at the market open on Dec. 4, 2009, under the symbol ADM.WT.

With receipt of the net proceeds of the financing and as of the date of this press release, Andina's cash position is approximately $44.2-million. The net proceeds from the financing will primarily be used to finance development of the Volcan gold project, including development drilling and engineering following completion of the company's conceptual development study for Volcan. In addition, a portion of the proceeds will be used for strategic regional exploration, which could serve to further enhance initial Volcan development. The strategic exploration is focused on several targets that show potential for higher-grade ore in proximity to the proposed initial development site. The remaining funds will be used for general corporate, working capital and administrative purposes.

"We are now in a better position to progress Volcan development, with funding in hand for more advanced engineering studies that could take us to the feasibility stage on initial development," said George Bee, president and chief executive officer. "The next phase of engineering will be contingent on the approval of our board of directors following presentation of Volcan's conceptual development study and preliminary economic assessment, planned for release in early 2010. This funding also gives us greater flexibility to expand strategic regional exploration in the current field season, if warranted by positive results."

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