Montero Mining closes CAD$1.5M private placement

Montero Mining and Exploration Ltd. (TSXV: MON) (OTC Pink: MXTRF) has closed a non-brokered private placement, issuing 2,727,273 units at CAD$0.55 per unit for gross proceeds of CAD$1,500,000, according to a company statement.

Each unit consists of one common share and one half of one common share purchase warrant. Each whole warrant allows the holder to purchase one common share at CAD$0.70 per share for 12 months from the date of issuance. The warrants include an acceleration provision that allows the company to shorten the expiry period to 30 days if the share price closes at or above CAD$1.00 for 10 consecutive trading days on the TSX Venture Exchange.

The company said it intends to use the net proceeds to fund exploration and drilling at its Elvira Gold Project in Chile, advance other Chilean mineral projects, and for general working capital purposes.

Company insiders acquired 418,637 units in the offering, which the company classified as a related party transaction under Multilateral Instrument 61-101. Montero said it is relying on exemptions from formal valuation and minority shareholder approval requirements, as insider participation did not exceed 25% of the company's market capitalization.

The company paid aggregate finder fees of $13,970 in connection with the offering. Securities issued are subject to a four-month and one-day statutory hold period under Canadian securities laws. The offering remains subject to final acceptance by the TSX Venture Exchange.

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