Altiplano Minerals Ltd. to acquire Demetra Minerals via stock purchase

Altiplano Minerals Ltd. (APN) said on Monday that it has agreed to acquire the remaining shares of Demetra Minerals (DMI) in a "binding arm’s length letter agreement."

DMI, through a subsidiary, owns the mining lease for a deposit of gypsum, also known as calcium sulfate, in Ana Sofia, Argentina. Roughly 34 miles from Santiago City and 684 miles north of Buenos Aires, the property is located in the Santiago del Estero province.

In exchange for DMI’s shares, APN has agreed to raise $2 million before the acquisition  and advance $1.5 million to DMI, at 12 percent interest per year, to provide the required project funding for continued development of the Ana Sofia property.

DMI, for its part, will consolidate its shares at a 2-to-1 ratio. DMI principals will hold approximately 8 million of the post-consolidation shares, and these will be converted to special warrants, with performance thresholds dependent on future earnings. DMI post-consolidation shares will be able to be exchanged with APN shares and special warrants on a one-to-one basis.

APN is a Canada-based mineral exploration firm concerned mainly with acquiring projects with the potential for investment, taking those projects from the discovery to the exploration stage.

Organizations in this story

Altiplano Minerals Ltd 9797 45 Ave NW Edmonton, AB T6E 5C5

Demetra Minerals Inc 510 W Hastings St Vancouver, BC V6B 1M1

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