Coro Executes Amended San Jorge Agreement
October 11 2012 - 3:08PM
Marketwired Canada
Coro Mining Corp. ("Coro" or the "Company") (TSX:COP) is pleased to announce
that further to its news release of February 29th 2012, Franco-Nevada
Corporation ("Franco Nevada") and the Company have executed an amended 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 options payments due.
Table 1 compares the amended terms with the previous acquisition terms.
Alan Stephens, President and CEO of Coro commented, "We are very pleased to have
executed the amended Purchase Agreement with Franco Nevada and have paid the
quarterly payments due on April 1st, July 1st and October 1st, 2012. The Company
will provide its shareholders with an update of the status of San Jorge
shortly."
As of June 30, 2012 the Company had approximately US$7.9 million in cash, and is
well funded to advance its projects.
Table:1 - Comparative Table of Significant Acquisition terms
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Previous Outstanding Payments Amended Terms
----------------------------------------------------------------------------
Remaining Cash US$9.25m- Due US$5m in May 2012 and US$1.25m annually,
Payments US$4.25m in May 2013 payable quarterly,
commencing March 31,
2012 for ten years
----------------------------------------------------------------------------
Commercial Sulphide Payment: None
Production US$0.02 per lb on the copper contained
Payment 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 on any None
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 production 7.5% NSR on all gold
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, El Inca, 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 development of San Jorge
and any gold production 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.
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