Los Andes Copper raises $4m in funding from Queen’s Road

Vancouver-based mining company Los Andes Copper has secured $4 million in convertible debenture financing from Queen’s Road Capital. The proceeds will be used in part to complete the company’s Vizcachitas project, located along Chile’s copper belt. Los Andes Copper has previously raised financing from US mining private equity firm Resource Capital Funds.

PRESS RELEASE

March 30, 2022

Vancouver, BC – Los Andes Copper Ltd. (“Los Andes” or the “Company”, TSX Venture Exchange: LA) is pleased to announce that it has entered into an agreement with Queen’s Road Capital Investment Ltd. (“Queen’s Road Capital”) (TSX Venture Exchange: QRC) whereby Queen’s Road Capital will invest US$4,000,000 in Los Andes by the way of convertible debenture (the “Convertible Debenture”).

The Convertible Debenture will have a five-year term, carry an eight percent coupon and will be convertible into common shares in the capital of the Company (“Common Shares”) at a share price of C$ 19.67. The interest is payable quarterly, five percent in cash and three percent in shares, at the 20-day volume weighted average price prior to the interest payment date.

The proceeds received from this investment will be allocated towards the completion of the Vizcachitas project (“Vizcachitas” or the “Vizcachitas Project”) pre-feasibility study and for general corporate purposes.

Closing of the financing is subject to the satisfaction of customary closing conditions, including but not limited to TSX Venture Exchange approval and the completion of definitive documentation. Closing is expected to occur the first week of April, 2022.

R. Michael Jones, CEO of Los Andes, commented:
“We are very pleased that Queen’s Road Capital is making this follow-on investment, which demonstrates its continued confidence in Los Andes Copper. The stalwart support of Queen’s Road is a testament to their long-term support of their mining companies. We are at a very exciting time in the company with significant pending drilling results and a pre-feasibility study in our milestones in the months ahead. This modest capital raise allows the company to complete the milestones we set out for 2022.

Warren Gilman, Chairman and CEO of Queen’s Road Capital, commented:
“Queen’s Road Capital is pleased with the progress to date to daylight the value and potential of Los Andes Copper. The further investment in Los Andes is in exact alignment with our strategy to be a financier of choice for mining companies with world class assets”

About Queen’s Road Capital Investment Ltd.
Queen’s Road Capital is a leading financier to the global resource sector. The company is a resource focused investment company, making investments in privately held and publicly traded resource companies.

It is intended that the company will acquire and hold securities for both long-term capital appreciation and short-term gains, with a focus on convertible debt securities and resource projects in advanced development or production located in safe jurisdictions.

Queen’s Road Capital Investment Ltd. is listed on the TSX-V under the ticker: QRC.

About Los Andes Copper Ltd.
Los Andes Copper Ltd. is a development company with a 100% interest in the Vizcachitas Project in Chile. The Company is focused on progressing the Vizcachitas Project, which is located along Chile’s most prolific copper belt, into production.

Vizcachitas is a copper-molybdenum porphyry deposit, located 120 km north of Santiago, Chile, in an area of good infrastructure. The National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”) compliant report titled “Preliminary Economic Assessment of the Vizcachitas Project” (the “PEA”), dated June 13, 2019, prepared by Tetra Tech, highlights that the Vizcachitas Project has a post-tax NPV (8% discount rate) of approximately USD$1.8 billion and an IRR of 20.77%, based on a USD$3 per pound copper price. The Vizcachitas Project has a Measured Resource of 254.4 million tonnes at a grade of 0.439% copper and an Indicated Resource of approximately 1.03 billion tonnes at a grade of 0.385% copper. The PEA can be found on the Company’s SEDAR profile at www.sedar.com.