Chile Mining Technologies Provides Corporate Update and Announces Partial Vesting of Make Good Warrants
August 29 2011 - 11:19AM
Business Wire
Chile Mining Technologies Inc. (“CMT” or the “Company”) (Pink
Sheets: LVEN), a mineral extraction company based in the Republic
of Chile, today provided the following corporate update and
announced that the make good common stock purchase warrants issued
to investors in connection with its May 12, 2010 private placement
have partially vested.
As the Company announced previously, due to increases in the
price of finished copper, copper mining operations in Chile are now
requiring copper refining and extraction operations, such as the
Company’s operations, to pay for unprocessed ore upon delivery,
whereas prior practice in the industry was that the ore was
consigned to refining and extraction operations and payment was
made once the copper had been extracted and sold. As a result of
this change in industry practice, the working capital required to
conduct the Company’s operations at maximum capacity increased
substantially. These increased costs have resulted in a severe
liquidity issue for the Company and its inability to cover the
costs of professional services necessary to timely complete its
audit for the fiscal year ended March 31, 2011. As a result, the
Company has become ineligible for quotation on the Over-the-Counter
Bulletin Board (“OTCBB”) as of August 15, 2011. The Company’s
common stock is currently quoted on the over-the-counter market
operated by Pink Sheets LLC.
The Company has secured the capital necessary to pay for the
professional services needed to complete its audit for the fiscal
year ended March 31, 2011, and expects that it will file both its
10-K for the fiscal year ended March 31, 2011, and its 10-Q for the
three months ended June 30, 2011, with the with the U.S. Securities
and Exchange Commission (“SEC”) in September 2011. Once the Company
is fully compliant with its SEC reporting obligations, the Company
intends to work with a market maker to file an application to
register in and quote its common stock on the OTCBB in accordance
with SEC Rule 15c2-11, however, the Company cannot guarantee that
it will be successful in having its common stock quoted on the
OTCBB in the future, or that it will secure sufficient funds to
cover the costs of professional services necessary to have its
stock quoted on the OTCBB.
Also as a result of the change in industry practice discussed
above, the Company was unable to meet certain financial performance
targets during the fiscal year ended March 31, 2011, as agreed to
with investors in the Company’s May 12, 2010 private placement.
Accordingly, 50% of each make good common stock purchase warrant
issued in connection with the May 12, 2010 private placement has
vested and may be exercised for shares of the Company’s common
stock. Investors who wish to exercise the vested portion of their
make good common stock purchase warrants should follow the
procedure set forth in the warrant and may deliver their exercise
notice to the Company’s outside legal counsel by mail at Pillsbury
Winthrop Shaw Pittman LLP, 2300 N Street N.W., Washington, DC
20007, Attention: Brian J. Buck, or via email to
chilemining@pillsburylaw.com.
About Chile Mining Technologies Inc.
CMT is a mineral extraction company based in the Republic of
Chile, with copper as its principal “pay metal.” The Company has
refined the electrowin process in a way that permits it to be used
at relatively small mine and/or tailings sites. By utilizing
Minimum Intrusion Non-traditional Input plants (“MINI plants”), CMT
is able to build scalable, less expensive plants closer to source
material deposits, and operate where it is not economical for
larger open-pit mining companies to operate. As a result, CMT is
able to reduce costs and operate profitably with smaller
deposits.
Safe Harbor Statement
This press release may include certain statements that are not
descriptions of historical facts, but are forward-looking
statements. Such statements include, among others, those concerning
the Company’s ability to file its required reports with the SEC in
the time frame expected and its ability to have its common stock
quoted on the OTCBB, as well as all assumptions, expectations,
predictions, intentions or beliefs about future events.
Forward-looking statements can be identified by the use of
forward-looking terminology such as ‘will,’ ‘believes,’ ‘expects’
or similar expressions. Such information is based upon expectations
of the Company’s management that were reasonable when made but may
prove to be incorrect. All of such assumptions are inherently
subject to uncertainties and contingencies beyond our control and
based upon premises with respect to future business decisions,
which are subject to change. The Company does not undertake to
update the forward-looking statements contained in this press
release. For a description of the risks and uncertainties that may
cause actual results to differ from the forward-looking statements
contained in this press release, see the Company’s Current Report
on Form 8-K, as amended, filed with the SEC on May 14, 2010, and
our subsequent SEC filings. Copies of filings made with the SEC are
available through the SEC’s electronic data gathering analysis
retrieval system at http://www.sec.gov.