Minco’s Xtierra to raise C$5 mln for Bilbao silver‐zinc‐copper project, Mexico

Irish headquartered mineral exploration and development company Minco Plc (AIM: MIO) said that its 60% owned Canadian subsidiary Xtierra Inc (TSX-V: XAG) has agreed a non brokered private placement of up to C$5 million. Proceeds of the placing will be used to fund further metallurgical testing and feasibility work on Xtierra's Bilbao silver‐zinc‐copper project in Zacatecas, Mexico.

Xtierra will issue up to 25 million units, comprising 1 common share and 0.5 warrants at C$0.20 per unit. Each whole warrant entitles the holder to purchase one common share at C$0.30 per share for one year. The placing units will be subject to a hold period of four months and one day from the date of issue, the placing is expected to close by the end of February 2010.

As part of the private placement, Xtierra has entered into a subscription agreement with TayCon Corporation (TSX-V: TYC), a TSX-V capital pool company (CPC). TayCon has subscribed for 2.5 million units for C$500,000, with the option to purchase a further 125,000 units at any time prior to closing.

The CPC program is a listing vehicle offered exclusively by TSX Venture Exchange, creating a ‘cash-shell’ that is listed on the exchange with the view to invest in an appropriate business within 24 months. The subsequent investment is deemed the CPC’s ‘qualifying transaction’, and the CPC is withdrawn from the exchange or can be merged into the investee.

For TayCon the Xtierra subscription is designated as a ‘qualifying transaction’, as such the placing units will be distributed to TayCon's shareholders in proportion to their shareholdings upon closing and TayCon will be subsequently dissolved.

Xtierra is a Toronto based exploration and development company, which is currently conducting a feasibility study on its 100% owned Bilbao silver‐zinc‐copper project. The company aims to become a mid‐tier producer of precious and base metals through the development of its Bilbao and Laguna projects in the Central Mexican Mineral Belt. Minco is engaged in zinc exploration on the Pallas Green property in Ireland, through a joint venture with Xstrata (LSE: XTA).  http://www.proactiveinvestors.co.uk/companies/news/12427/mincos-xtierra-to-raise-c5-mln-for-bilbao-silverzinccopper-project-mexico-12427.html