Coro Mining Corp. (“Coro” or the “Company”) (TSX:
COP) today announced that it has entered into an unsecured
working capital facility (“WCF”) with its major shareholders,
Greenstone Resources II LP (“Greenstone”), and Tembo Capital Mining
Fund II LP (“Tembo”) (together “the Lenders”), pursuant to which
the Lenders have agreed to lend up to US$6.0 million to Coro to
fund the Company through these challenging times.
The WCF has a 12-month term from the date of
closing and bears interest at 12% per annum. Greenstone and Tembo
will receive an aggregate 3% arrangement fee under the WCF, which
will be payable at maturity. The proceeds of the WCF will allow
Coro to continue its exploration and development plans, in a
measured fashion, for its flagship Marimaca Copper Project
(“Marimaca” or “the Project”), while removing the need to raise
equity in this Coronavirus emergency market environment.
Drawdown by the Company under the WCF is subject to the
approval of the Toronto Stock Exchange.
Michael Haworth, Executive Chairman of
Coro Mining Corp commented:
“Greenstone and Tembo continue to believe
Marimaca is one of the standout copper development stories globally
and this further investment underlines that fact.
“Current market conditions are unprecedented. We
will be exercising a high degree of capital discipline and limiting
cash burn wherever possible, while recognizing the safety of our
personnel and maintenance of our assets being our key
objectives.
“We do believe that continuing to advance the
development of Marimaca, in a measured fashion, while avoiding
issuing equity, is in the interest of our shareholders. We will
continue to monitor the broader market conditions and adjusting our
strategy as appropriate. This WCF gives the Company the flexibility
required within this operating environment.”
Marimaca Copper Project
Overview
Coro recently released an updated Mineral
Resource Estimate (“MRE”) for Marimaca of 420Kt of contained copper
with an average grade of 0.60% copper within the Measured &
Indicated Categories and 224Kt of contained copper with an average
grade of 0.52% copper within the Inferred Category (refer
release on 2 December 2019). This represents an increase
of almost 100% from the MRE released in April 2018 and makes the
Project one of the most significant copper oxide discoveries in
Chile in the last decade.
The Company is currently undertaking a
Preliminary Economic Assessment (“PEA”) for the Project, which is
anticipated to be completed in the first half of 2020. The Project
is expected to benefit from low upfront capital development costs
and, due to the favourable geometry of the orebody and relatively
simple oxide processing, through Solvent Extraction-Electrowinning
(“SX-EW”), Management believes the Project will have competitive
operating costs.
Qualified Person
The technical information in this news release,
including the information that relates to geology, drilling and
mineralization was prepared under the supervision of, or has been
reviewed by Sergio Rivera, Vice President of Exploration, Coro
Mining Corp, a geologist with more than 36 years of experience and
a member of the Colegio de Geologos de Chile and of the Institute
of Mining Engineers of Chile, and who is the Qualified Person for
the purposes of NI 43-101 responsible for the design and execution
of the drilling program.
The independent Qualified Person responsible for
the Mineral Resource Estimate at Marimaca is Luis Oviedo Hannig, a
geologist with more than 41 years of experience at NCL Ingeniería y
Construcción S.A. He is a member of the Colegio de Geologos de
Chile and the Institute of Mining Engineers of Chile and is
registered with the Qualification Commission of Resources and
Mining Reserves (CRISCO, CMC, Membership Number 013). He has a
postgraduate degree in "Certification and Validation of Mining
Assets” from Queens University and PUVC.
The Qualified Person for other contents than
geological information of this news release is Luis Tondo, Chief
Executive Officer and Director of Coro Mining, a mining engineer
with more than 30 years of experience and a Fellow of The
Australasian Institute of Mining and Metallurgy, who is the
Qualified Person for the purposes of NI 43-101.
All QPs confirm they have visited the project area,
reviewed relevant project information, allowing the correct
technical judgement in their respective areas of expertise, in turn
used in the writing and reviewing the contents of this news
release.
Coro Mining and the Marimaca
Project
Marimaca is fast becoming recognised as one of
the most significant copper discoveries in Chile in recent years as
it represents a new type of deposit which challenges accepted
exploration wisdom and promises to open up new frontiers for
discoveries elsewhere in the country. Marimaca is hosted by
intrusive rocks while the numerous manto deposits in the same
region are hosted by volcanics. With a lack of new copper
exploration discoveries in Chile, the growing Marimaca resource is
a high-profile development project as it is situated in the coastal
belt at low elevation close to Antofagasta and Mejillones. This
prime location could enable its future development at a relatively
modest capital investment. Marimaca will benefit from nearby
existing infrastructure including roads, powerlines, ports, a
sulphuric acid plant, a skilled workforce and seawater.
Contact InformationFor further
information please visit www.coromining.com or contact:
Tavistock +44 (0) 207 920
3150Jos Simson/Emily Mosscoro@tavistock.co.uk
Forward Looking Statements
This 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, the
impact of a rebranding of the Company, 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: risks related to share price
and market conditions, 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.
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