March 22, 2017, Coro Mining Corp. (“Coro” or the “Company”) (TSX Symbol: 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.
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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Cautionary Note Regarding Forward Looking Statements
Certain statements contained in this press release constitute forward-looking information within the meaning of applicable securities laws. These forward looking statements relate to future events or the Company’s future performance, business prospects or opportunities including, without limitation, statements relating to the completion of the Private Placement. The Company believes that the expectations reflected in such forward looking information are reasonable, but no assurance can be given that these expectations will prove to be correct and such forward-looking information should not be unduly relied upon. These statements speak only as of the date of this press release. Forward looking information involves risks and uncertainties which may cause actual results to be materially different from those expressed or implied by such forward looking information. Such risk and uncertainties relate to, among other things: receipt of shareholder approval of the Private Placement, receipt of Toronto Stock Exchange approval of the Private Placement and the Company’s ability to find suitable investors for the Private Placement as well as other risks disclosed in the Company’s documents filed from time to time with the securities regulators in the Provinces of British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, New Brunswick, Nova Scotia, Prince Edward Island and Newfoundland and Labrador. Accordingly, readers should not place undue reliance on forward-looking statements. Coro undertakes no obligation to update publicly or otherwise revise any forward-looking statements contained herein whether as a result of new information or future events or otherwise, except as may be required by law.