Coro Amends Terms of San Jorge Agreement
February 29 2012 - 12:02PM
Marketwired
Coro Mining Corp. ("Coro" or the "Company") (TSX:COP) is pleased to
announce that Franco-Nevada Corporation ("Franco Nevada") and the
Company have agreed to amend the terms of the Purchase Agreement by
which Coro may acquire its 100% interest in Minera San Jorge
("MSJ"). Franco Nevada acquired Lumina Royalty Corp, the previous
owner of MSJ in December 2011.
The amended terms for Coro to acquire 100% of MSJ are as
follows;
-- Option payments by Coro of US$1.25 million per year, for 10 years,
payable quarterly, commencing March 31, 2012
-- Coro may at any time, prepay the outstanding amount with a one-time
payment equal to the net present value of the future payments, using a
5% discount rate
-- A 7.5% Net Smelter Return ("NSR") payable by Coro on all gold produced
from the property
-- The option payments are not payable when exceeded by the gold NSR
payment for the period
-- No other consideration, obligations, payments, or royalties are due to
Franco Nevada, and Coro may withdraw from the Agreement at any time by
not making the payments due.
Table 1 compares the amended terms with the previous acquisition
terms. The companies have signed a non-binding letter of intent and
are in the process of finalizing the amended agreement.
Alan Stephens, President and CEO of Coro commented, "We are very
pleased that Franco Nevada has shown its willingness to modify the
terms of the Purchase Agreement. The previous agreement
contemplated US$9.25 million in payments over the next 15 months;
the new option payment schedule allows Coro to stage its investment
in the project until it has greater certainty on the ability to
permit the project in Mendoza province. The Company will provide
its shareholders with an update of the status of San Jorge
shortly."
As of December 31, 2011 the Company had approximately CA$12
million in cash, and is well funded to advance its projects.
Table:1 - Comparative Table of Significant Acquisition terms
---------------------------------------------------------------------------
Previous Outstanding Payments Amended Terms
---------------------------------------------------------------------------
Remaining Cash US$9.25m- Due US$5m in May US$1.25m annually,
Payments 2012 and US$4.25m in May 2013 payable quarterly,
commencing March 31, for
ten years
---------------------------------------------------------------------------
Commercial Sulphide Payment: None
Production Payment US$0.02 per lb on the copper
contained in the mineable
proven and probable sulphide
reserves
Oxide Payment:
US$0.025 per lb on the copper
contained in the mineable
proven and probable oxide
reserves
NB: The total cash payments of
US$16m were deductible from
the first of the above
payments
---------------------------------------------------------------------------
Copper Royalty A copper royalty was also due None
on any production in excess of
the aforementioned reserves
payments of US$0.015 per lb of
production from the sulphides
and US$0.02 per lb of
production from the oxides.
---------------------------------------------------------------------------
Non-Copper NSR 1.5% NSR on all non-copper 7.5% NSR on all gold
production produced
---------------------------------------------------------------------------
CORO MINING CORP.
Alan Stephens, President and CEO
About Coro Mining Corp.:
The Company was founded with the goal of building a mining
company focused on medium-sized base and precious metals deposits
in Latin America. The Company intends to achieve this through the
exploration for, and acquisition of, projects that can be developed
and placed into production. Coro's porphyry copper properties
include the Berta, El Desesperado, Chacay, Llancahue, and Celeste
exploration projects located in Chile and the advanced San Jorge
porphyry copper-gold project, in Argentina.
This news release includes certain "forward-looking statements"
under applicable Canadian securities legislation. Such
forward-looking statements or information, including but not
limited to those with respect to the prices of copper, estimated
future production, estimated costs of future production, permitting
time lines, involve known and unknown risks, uncertainties, and
other factors which may cause the actual results, performance or
achievements of the Company to be materially different from any
future results, performance or achievements expressed or implied by
such forward-looking statements or information. Such factors
include, among others, the actual prices of copper, the factual
results of current exploration, development and mining activities,
changes in project parameters as plans continue to be evaluated, as
well as those factors 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.
Contacts: Coro Mining Corp. Michael Philpot Executive
Vice-President (604) 682-5546investor.info@coromining.com
www.coromining.com
Marimaca Copper (TSX:MARI)
Historical Stock Chart
From Jun 2024 to Jul 2024
Marimaca Copper (TSX:MARI)
Historical Stock Chart
From Jul 2023 to Jul 2024