Pampa Metals Corp. has provided an update to its non-brokered private placement detailed in a Jan. 19, 2023, news release. The company has received subscriptions in excess of $2-million under the private placement.

The company will shortly close a first tranche of $2-million, which will enable mobilization of the maiden Block 4 drill program.

Non-Brokered private placement

On Jan. 19, 2023, the company launched a non-brokered private placement offering of up to 20 million units at a price of 15 cents per unit for gross proceeds of up to $3-million. Each unit will consist of one fully paid common share purchase warrant. Each warrant shall entitle the holder to acquire an additional common share at a price of 21 cents for a period of three years after the closing of the offering.

In connection with the offering, the company will pay finders' fees of up to 7 per cent in cash and 7 per cent in finders' warrants from the sale of units to third parties sourced by finders. Finders' warrants will be on the same terms as those issued under the offering and entitle the holder to purchase one common share of the company at a price of 21 cents per share for a period of three years from the closing date.

Proceeds from the offering will be used primarily to drill test the Buenavista target and the Block 4 project more broadly, where an initial approximate 2,100-metre diamond drill program has been designed to test coincident geological, geochemical and geophysical anomalies. Residual proceeds will be directed toward due diligence on the identification and possible acquisition of large porphyry copper-molybdenum targets capable of complementing the company's existing portfolio, as well as general corporate purposes.

Units will be offered by way of the listed issuer exemption under National Instrument 45-106 -- Prospectus Exemptions in all the provinces of Canada with the exception of Quebec. A potential investor resident in Canada (except Quebec) is not required to be an accredited investor under applicable Canadian securities laws to participate in the offering. The securities forming part of the units are expected to be immediately freely tradeable under applicable Canadian securities legislation if sold to purchasers' resident in Canada.

There is an offering document related to this offering that can be accessed under the company's profile on SEDAR and at the company's website. Prospective investors should read this offering document before making an investment decision.

About Pampa Metals Corp.

Pampa Metals is a Canadian company listed on the Canadian Securities Exchange (CSE: PM) as well as the Frankfurt (FSE: FIRA) and OTC (OTCQB: PMMCF) exchanges. Pampa Metals owns a highly prospective, wholly owned, 47,400-hectare portfolio of seven projects for copper, molybdenum and gold located along proven mineral belts in Chile, one of the world's top mining jurisdictions. The company is actively progressing four of its projects, including completed and planned drill tests, and has two additional projects optioned to Austral Gold Ltd.

The company has a vision to create value for shareholders and all other stakeholders by making a major copper discovery along the prime mineral belts of Chile, using the best geological and technological methods.