Coro Further Consolidates Ownership at Marimaca with Option Agreement to Acquire Atahualpa Area Royalties
February 07 2019 - 7:15AM
Coro Mining Corp. (“Coro” or the “Company”) (TSX:
COP) is pleased to announce that it has entered into an
option agreement to acquire a collection of 2% net smelter
royalties at the Company’s Marimaca Project, thereby further
consolidating its ownership over the project in advance of ongoing
exploration results and the anticipated enlarged and integrated
Marimaca resource estimate which is on track for completion in the
third quarter of 2019.
Highlights
- Agreement favourably structured: minimal payments over 24
months, balance only in 36 months.
- Royalty areas optioned include:○ Atahualpa, where
exploration results just released demonstrated copper oxide
mineralisation○ Tarso, where drilling due to commence○
Additional early stage areas, notably Sorpresa I and II.
- The total option value of $2.2m for 2% royalties compares
favourably to the buyback clause of $2.0m for 0.5% royalties in
other Marimaca areas such as La Atómica and Olimpo North and
South.
- Early agreement reduced risk of increased royalty cost as
exploration program advances.
- As the exploration program advances and more resources are
identified, royalties expected to increase in value.
Commenting on the announcement, Luis Tondo,
President and CEO of Coro said: “I am pleased to announce that we
have now an option to buy back all of the 2% NSR over some of the
most prospective ground at our Marimaca Project. The ongoing
excellent drilling results at Marimaca, notably those released this
week at Atahualpa, are demonstrating the enlarged potential at
Marimaca, and therefore it is wholly appropriate that we secure as
much value for shareholders in the District now, ahead of ongoing
exploration results.”
Option Agreement InformationThe
agreement is an irrevocable purchase agreement between the
Company’s Chilean subsidiary, Minera Cielos Azul Ltda. (MCAL) and
Capax S.A. The total cost is US$2.2m, divided over in 4
tranches over 36 months:
- US$0.2 million on signature
- US$0.2 million on 12 month anniversary
- US$0.2 million on 24 month anniversary
- US$1.6 million on 36 month anniversary for exercising the
Option
The royalties are for the properties acquired
from Capax SA as part of the Sierra Miranda Claims acquisition,
completed in September 2018. These include the Atahualpa,
Tarso, Sorpresa I and Sorpresa 2 areas, where exploration
activities are ongoing, in addition to a collection of other areas
within the greater Marimaca project area. These areas are detailed
in Figure 1 below.
Following this option agreement, the ownership
and royalties over the Marimaca Project claims are detailed in
Figure 2 below:
Figure 2: Marimaca Project Claims, Ownership and
Royalties
Claim Name |
Area(ha) |
CurrentOwnership |
Optioned |
Acquired |
Cost |
Royalty |
Phase |
Marimaca 1-23 |
114 |
51% |
Apr 2014 |
Aug 2018 |
na |
zero |
1 |
2 |
3 |
La Atómica** |
50 |
Option |
Nov 2017 |
|
$6m |
1.5% |
|
Atahualpa* |
203 |
100% |
- |
Aug 2018 |
$6.0m |
2% |
|
Atahualpa East* |
120 |
100% |
- |
Aug 2018 |
2% |
|
Sorpresa I* |
97 |
100% |
- |
Aug 2018 |
2% |
|
|
Sorpresa II* |
150 |
100% |
- |
Aug 2018 |
2% |
|
|
Olimpo South** |
146 |
Option |
Jan 18 |
|
$6.5m |
1.5% |
|
|
Olimpo North** |
100 |
Option |
Jan 18 |
|
1.5% |
|
|
* Properties with royalties optioned under new
agreement.** Properties with option agreements containing buy-back
clauses for acquiring 0.5% royalties for US$2.0m.
Contact InformationFor further
information please visit www.coromining.com or contact:Nicholas
Bias, VP Corporate Development & Investor RelationsOffice:
+56 2 2431 7601 Cell:
+44 (0)7771 450 679Email: nbias@coromining.com
Forward Looking StatementsThis
news release includes certain “forward-looking statements” under
applicable Canadian securities legislation. These statements
relate to future events or the Company’s future performance,
business prospects or opportunities. Forward-looking statements
include, but are not limited to, statements regarding the future
development and exploration potential of the Marimaca Project.
Actual future results may differ materially. There can be no
assurance that such statements will prove to be accurate, and
actual results and future events could differ materially from those
anticipated in such statements. Forward-looking statements reflect
the beliefs, opinions and projections on the date the statements
are made and are based upon a number of assumptions and estimates
that, while considered reasonable by Coro, are inherently subject
to significant business, economic, competitive, political and
social uncertainties and contingencies. Many factors, both known
and unknown, could cause actual results, performance or
achievements to be materially different from the results,
performance or achievements that are or may be expressed or implied
by such forward-looking statements and the parties have made
assumptions and estimates based on or related to many of these
factors. Such factors include, without limitation: the inherent
risks involved in the mining, exploration and development of
mineral properties, the uncertainties involved in interpreting
drilling results and other geological data, fluctuating metal
prices, the possibility of project delays or cost overruns or
unanticipated excessive operating costs and expenses, uncertainties
related to the necessity of financing, the availability of and
costs of financing needed in the future 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.
A photo accompanying this announcement is available at
http://www.globenewswire.com/NewsRoom/AttachmentNg/19ca6b3d-cb34-4ee8-915e-548623c6d604
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