American Mineral raises $30 million

Arkansas-based American Mineral Fields (VSE) has raised $30 million to acquire, explore and develop mining properties worldwide.

Through a private placement, American issued 4 million special warrants at $7.50 per special warrant. Each special warrant is exercisable for one share and half a share purchase warrant. Each whole share purchase warrant, in turn, will entitle the holder to buy one additional share for $9 within one year.

Just under half the proceeds of the placement has been deposited into escrow in case the company’s prospectus is not cleared and the government of Zaire does not approve American Mineral’s agreement with Gecamines to rehabilitate the Kipushi mine in southern Zaire. In that event, investors will be repaid 50% of the net proceeds of the placement.

Earlier this year, American Mineral Fields entered into an agreement with Gecamines to rehabilitate the Kipushi zinc-copper-gold mine and construct a new zinc-copper processing plant.

The company also holds two alluvial diamond properties in Brazil (the Santo Inacio and the Chapada) and is acquiring other properties in the country.

Recently, American Mineral added a metallurgist and chemist to the management team to help assess and develop projects.