Coro Announces Completion of C$33.6 Million Rights Offering Concluding Aggregate C$46.8 Million Comprehensive Financing Plan
September 26 2018 - 2:48PM
Coro Mining Corp. (“Coro” or the
“Company”) (TSX: COP) is pleased to
announce today the successful closing of its rights offering
following the expiry of the issued rights on September 20, 2018.
The Company issued a total of 671,591,957 common shares in
the rights offering for gross proceeds of approximately C$33.6
million. Combined with the non-brokered premium placement for
C$13.2 million announced in August, the Company has raised a total
of C$46.8 million.
Highlights
- Total C$46.8 million raised (approximately US$36.1)
- Rights offering approximately C$33.6 million
- Premium private placement C$13.2 million
- Company recapitalised and able to repay all debt, with adequate
working capital facilities
- US$8.0 million of debt repaid concurrently with rights offering
closing
- Marimaca to advance with contiguous land acquisitions and
12-month exploration program
- Introduction of new shareholder supports a stable shareholder
base
Commenting on the announcement, Luis Tondo,
President and CEO said: “I am delighted that the financings have
been successfully completed. Even in some challenging market
conditions, we have raised money at a premium with our private
placement and saw encouraging participation by our shareholders in
the rights offering; I believe that this is testament to the
potential we have ahead of us. I wish to thank all
shareholders that participated and for their confidence in a
strengthened Coro as we move forward. With the Company now
properly financed and our debt burden alleviated, I am excited
about the prospects for Marimaca as we now have the financial
resources to embark on an exploration program that will determine
the scale and potential of the resource there. In the coming
weeks we expect to detail our exploration plans to shareholders,
and how we believe that these will add value at Marimaca and for
Coro as a whole.”
Rights OfferingThe Company
issued a total of 671,591,957 common shares in the rights offering
at a subscription price of C$0.05 per common share. The total
number of issued and outstanding common shares of the Company upon
completion of the rights offering is 1,455,388,294. To the
knowledge of the Company, no person has become an insider as a
result of the rights offering.
Of the 671,591,957 common shares issued under
the rights offering, 658,092,091 were subscribed for by Coro
shareholders under the Basic Subscription Privilege and
Additional Subscription Privilege (as those terms are described in
Coro’s rights offering circular dated August 13, 2018 (the “Rights
Offering Circular”). Since 13,499,866 of the shares available in
the rights offering were unsubscribed for by holders of rights,
such 13,499,866 additional shares were issued to Ndovu Capital XIV
BV (“Tembo Capital”), pursuant to the Standby Commitment Agreement
dated August 3, 2018 between Tembo Capital and the Company, details
of which are available in the Rights Offering Circular.
Following the premium placement and the rights offering, the
Company’s largest shareholder Greenstone Resources LP (together
with its affiliates, “Greenstone”) holds 809,646,063 common shares
representing approximately 55.63% of the issued and outstanding
common shares of the Company and Tembo Capital holds 228,254,313
common shares, equal to 15.68% of the issued and outstanding shares
of the Company. Both Greenstone and Tembo Capital, by virtue
of having beneficial control, directly or indirectly, of 10% or
more of the issued and outstanding common shares of the Company,
are “related parties” of Coro within the meaning of Multilateral
Instrument 61-101 – Protection of Minority Security Holders in
Special Transactions of the Canadian securities regulators (“MI
61-101”). The Company understands that certain directors and
officers of the Company, who are also “related parties” of the
Company under MI 61-101, participated in the rights offering.
Notwithstanding that the respective participation in the
rights offering of Greenstone, Tembo Capital and those directors
and officers might otherwise meet the definition of “related party
transaction” under MI 61-101, Greenstone and the directors and
officers are each excepted from the application of the related
party rules of MI 61-101 by virtue of s. 5.1(k)(i) of MI 61-101 and
Tembo Capital is excepted from the application of the related party
rules of MI 61-101 by virtue of s. 5.1(k)(ii).
Use of ProceedsThe proceeds
from the rights offering will be used as set out in the Company’s
Rights Offering Circular, including but not limited to the
repayment of loans from Greenstone, exploration and development at
the Marimaca Project and other Marimaca district claims.
On behalf of the Board of Directors,LUIS TONDO, PRESIDENT &
CEO.
Contact Information For further information
please contact of visit www.coromining.com or contact: Nicholas
Bias, VP Corporate Development & Investor Relations +1 (604)
682 5546 x 202 or +44 (0)7771 450 679 | nbias@coromining.com
Forward Looking StatementsThis news release
includes certain “forward-looking statements” under applicable
Canadian securities legislation. Forward-looking statements involve
known and unknown risks, uncertainties and other factors which are
beyond Coro’s ability to predict or control and may cause Coro’s
actual results, performance or achievements to be materially
different from any of its future results, performance or
achievements expressed or implied by forward-looking statements.
These risks, uncertainties and other factors include, but are not
limited to, occurrence of unexpected financial obligations,
fluctuations in the price of commodities; fluctuations in the
currency markets; changes in national and local government,
legislation, taxation, controls, regulations and political or
economic developments; risks and hazards associated with the
business of mineral exploration, development and mining (including
environmental hazards, industrial accidents, unusual or unexpected
formations, pressures, cave-ins and flooding); the presence of laws
and regulations that may impose restrictions on mining and employee
relations. Such forward-looking statements are also based on a
number of assumptions which may prove to be incorrect, 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.
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.
Due to rounding, numbers presented throughout
this release and other documents may not add up precisely to the
totals provided and percentages may not precisely reflect the
absolute figures.
US$ amounts are approximate and based on the
closing C$ : US$ exchange rate of 0.77 on September 25, 2018.
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