Canadian miner Coro Mining Corp has launched a private placement offering intended to raise up to $16.15 million. The deal’s proceeds will fund the company’s acquisition of Minera Rayrock Ltda, a unit of Peruvian mining company Compañía Minera Milpo SAA, and other priorities. Coro said that its majority investor, U.K. metals and mining private equity firm Greenstone Resources, plans to invest, and if necessary, account for the entire offering. If that happens, Greenstone will increase its interest to 63.71 percent. Vancouver-based Coro explores and develops copper projects in Latin America.
Coro Announces Private Placement
VANCOUVER, BRITISH COLUMBIA–(Marketwired – March 22, 2017) –
Coro Mining Corp. (“Coro” or the “Company”) (TSX:COP) is pleased to announce a non-brokered private placement financing of up to 107,680,000 common shares at a price of CA$0.15 to raise gross proceeds of up to CA$16,152,000 (the “Private Placement”). The proceeds of the Private Placement will be used to fund the acquisition of Minera Rayrock Ltda. (see the Company’s news release dated August 4, 2016 for further details), continued exploration of the Company’s Marimaca Project and working capital purposes.
It is anticipated that Greenstone Resources L.P. (“Greenstone”), the Company’s major shareholder, will exercise its pre-emptive right to maintain its 55.66% share position and will acquire a minimum of 55,934,464 common shares under the Private Placement (the “Minimum Greenstone Participation”). If no other subscribers participate in the Private Placement, Greenstone has agreed to acquire all 107,680,000 common shares being offered (the “Maximum Greenstone Participation”), being 22.18% of the total outstanding common shares, resulting in Greenstone’s ownership percentage increasing to 63.71% of the total outstanding common shares.
Greenstone participated in the Company’s December 2016 private placement financing (the “December Financing”), acquiring 29,825,874 common shares at that time. Because Greenstone is an “insider” (as defined in the TSX Company Manual) and assuming completion of the Maximum Greenstone Participation, the 107,680,000 common shares, when added to Greenstone’s common shares acquired pursuant to the December Financing, will represent subscriptions of 30.84% of the common shares outstanding immediately preceding the date the December Financing completed. Because this exceeds 10% of the Company’s issued and outstanding common shares, the Toronto Stock Exchange will require shareholder approval of Greenstone Maximum Participation, with any votes cast by Greenstone excluded. As permitted by Subsection 604(d) of the TSX Company Manual, the Company intends to seek this approval by way of a written consent resolution of at least 50% of disinterested shareholders (being shareholders other than Greenstone). The Private Placement also remains subject to approval of the Toronto Stock Exchange.
CORO MINING CORP.
Alan Stephens, President and CEO
About Coro Mining Corp.:
Coro’s strategy is to grow a mining business through the discovery, development and operation of “Coro type” deposits. These are defined as projects at any stage of development, which are well located with respect to infrastructure and water, have low permitting risk, and have the potential to achieve a short and cost effective timeline to production. The Company’s preference is for open pit heap leach copper projects, where minimizing capital investment takes priority over maximizing NPV, where profitability is prioritized over production rate, and finally, where the likely capital cost is financeable relative to the Company’s market capitalization. The Company’s assets include the Marimaca development project; its 65% interest in the SCM Berta company, which includes the Berta and Nora operations; the Planta Prat project; the Llancahue prospect; and a royalty on the San Jorge copper-gold project located in Argentina.
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