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(Marketwire - May 24, 2012) - Esperanza Resources Corp. (TSX VENTURE:EPZ) ("Esperanza" or the "Company) is pleased to announce that it has closed the previously announced private placement of 24,000,000 special warrants ("Special Warrants") at a price of C$1.25 per Special Warrant (the "Issue Price") for aggregate gross proceeds of C$30 million (the "Offering"). The Offering was conducted through a syndicate of agents co-led by Cormark Securities Inc. and National Bank Financial Inc. and including Canaccord Genuity Corp. and Stonecap Securities Inc. (collectively, the "Agents"). The Agents also partially exercised the Agents' option and sold an additional 3,214,000 Special Warrants at the Issue Price for additional gross proceeds of approximately C$4 million. As consideration for their services in connection with the Offering, the Company has paid to the Agents a cash commission equal to 6% of the proceeds of the Offering.
Each Special Warrant, subject to the Penalty Provision (as defined below) and subject to adjustments in certain circumstances, will be exercisable into one unit of the Company (the "Units"), with each Unit comprised of one common share in the capital of the Company (a "Common Share") and one-half of one Common Share purchase warrant (each whole Common Share purchase warrant a "Warrant") by the holders thereof at any time following the closing of the Offering for no additional consideration. Each Warrant will entitle the holder thereof to purchase one Common Share of the Company (a "Warrant Share") for a period of 5 years following the closing of the Offering at an exercise price of C$1.80 per Warrant Share.