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Toronto – July 09, 2020: AbraPlata Resource Corp. (TSX.V:ABRA; OTCPK: ABBRF) ("AbraPlata" or the “Company”) is pleased to announce that it has closed its previously announced non-brokered private placement (the “Placement”).  In connection with the closing of the Placement, the Company issued 43,478,261 units (each, a “Unit”) at a price of $0.115 per Unit for gross proceeds of $5.0 million. Each Unit consists of one common share in the equity of the Company (each, a "Common Share") and one share purchase warrant (each, a "Warrant").  Each Warrant will entitle the subscriber to purchase one additional Common Share at a price of $0.17 until the second (2nd) anniversary of the closing date of the Private Placement (the "Expiry Date").

Mr. Eric Sprott through 2176423 Ontario Ltd. (“2176423”), a corporation which is beneficially owned by him, acquired 26,000,000 Units pursuant to the Private Placement. As a result Mr. Sprott beneficially owns and controls 26,000,000 Shares of the Company and 26,000,000 Warrants representing 8.2% of the issued and outstanding Common Shares on a non-diluted basis, and 15.1% on a partially diluted basis, assuming the exercise of Mr. Sprott’s share purchase warrants.  Prior to the closing of the Private Placement, Mr. Sprott did not beneficially own or control any securities of the Company.

The Units were acquired by Mr. Sprott, through 2176423, for investment purposes. Mr. Sprott has a long-term view of the investment and may acquire additional securities of the Company including on the open market or through private acquisitions or sell securities of the Company including on the open market or through private dispositions in the future depending on market conditions, reformulation of plans and/or other relevant factors.

A copy of 2176423’s early warning report will appear on the Company's profile on SEDAR and may also be obtained by calling 416-945-3294 (200 Bay Street, Suite 2600, Royal Bank Plaza, South Tower, Toronto, Ontario M5J 2J1).

Mr. John Miniotis, President and CEO of AbraPlata commented, “The addition of Mr. Sprott as a strategic investor is a major step in validating the Diablillos project as a high quality silver-gold exploration property, and further positions AbraPlata to deliver shareholder value through ongoing aggressive exploration.  Mr. Sprott is now the 3rd largest shareholder of AbraPlata behind Altius Minerals Corp. and SSR Mining Inc., with the three parties collectively holding more than 35% of the float.”

The proceeds of the Placement will be used to advance exploration activities at the Diablillos Silver-Gold project and for general working capital purposes. In connection with the completion of the Placement, the Company will pay aggregate finders’ fees of $251,292 to Clarus Securities Inc., Haywood Securities Inc. and Canaccord Genuity Corp. and issue 2,086,800 broker warrants exercisable for Common Shares at a price of $0.15 until the Expiry Date.

All securities issued in connection with the closing of the Placement are subject to a four-month-and one-day statutory hold period in accordance with applicable securities laws.

Officers and directors of AbraPlata subscribed in the Placement for an aggregate of 882,608 Units and the participation of such officers and directors of AbraPlata in the Placement constitutes a "related party transaction" within the meaning of Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101"). The Placement is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 pursuant to section 5.5(a) and section 5.7(1)(a) as the fair market value of the officers' and directors' participation is not more than 25% of the Company's market capitalization.

The securities offered in the Placement have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any U.S. state securities laws, and may not be offered or sold in the United States or to, or for the account or benefit of, United States persons, absent registration or any applicable exemption from the registration requirements of the U.S. Securities Act and applicable U.S. state securities laws. This news release does not constitute an offer to sell or the solicitation of any offer to buy securities in the United States, nor in any other jurisdiction.

About AbraPlata
AbraPlata is a mineral exploration company with a diversified portfolio of silver-gold and copper exploration projects in Argentina and Chile. The Company is focused on advancing its 100%-owned Diablillos silver-gold project in the mining-friendly Salta province of Argentina, which is well-advanced, with more than US$35 million spent historically on exploration with drilling ongoing and an initial open pit PEA completed in 2018.  The Company is led by an experienced management team and has long-term supportive shareholders including Altius Minerals and SSR Mining.  In addition, AbraPlata owns the Arcas project in Chile where Rio Tinto has an option to earn up to a 75% interest by funding up to US$25 million in exploration.  AbraPlata is listed on the TSX-V under the symbol “ABRA”.

For further information please visit the AbraPlata website at www.abraplata.com or contact:

John Miniotis, President & CEO
[email protected]
Tel: +1 416-306-8334

Cautionary Statements

This news release includes certain "forward-looking statements" under applicable Canadian securities legislation. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. All statements that address future plans, activities, events or developments that the Company believes, expects or anticipates will or may occur are forward-looking information. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.