Benton Advised That Coro Secures Partner for San Jorge Project
THUNDER BAY, ONTARIO--(Marketwired - Dec 9, 2013) - Benton
Capital Corp. (TSX-VENTURE:BTC) ("Benton") is pleased to inform its
shareholders that Coro Mining Corp. (TSX:COP) ("Coro") has advised
Benton that they have signed a binding Heads of Agreement with a
group consisting of Alterra Investments Ltd. and Solway Industries
Ltd. pursuant to which the group will have rights to acquire a 70%
interest in San Jorge with the provision for an early buy-out of
Coro's interest subject to Coro retaining a 2.5% Net Smelter Return
on the production of all payable metals from San Jorge with the
exception of gold. Coro will work diligently with this group to
execute a definitive agreement in due course. Benton continues to
hold approximately 42% of the common shares of Coro.
Stephen Stares, President and CEO of Benton stated, "We are very
pleased that the Coro team, in the midst of extremely turbulent
markets, has managed to add significant strength to the San Jorge
project through the signing of this Heads of Agreement. Alterra
Investments and Solway Industries bring with them the capital and
experience needed to solidify the future of San Jorge as a
significant development project in Argentina. Benton shareholders
will indeed capture the value that will be derived from the success
of San Jorge through Coro's continued interest in the project and
we commend Coro for their success in completing this
agreement."
Coro's press release from December 9, 2013 is reproduced
below:
CORO SIGNS BINDING HEADS OF AGREEMENT FOR SAN JORGE
December 9, Coro Mining Corp. ("Coro" or the "Company") (TSX
Symbol: COP) is pleased to announce that it has signed a binding
Heads of Agreement ("HOA") with a group comprised of Aterra
Investments Ltd. ("Aterra") and Solway Industries Ltd. ("Solway"),
(collectively, the "Group") for them to have rights to acquire an
interest in the Company's San Jorge project (the "Project"),
located in the province of Mendoza, Argentina. The Group has the
right to acquire a 70% interest in the Project, with the provision
for an early buy-out of Coro's interest subject to Coro's retention
of a 2.5% Net Smelter Return ("NSR") on the production of all
payable metals from the Project, except gold. Coro and the Group
will work diligently to structure and execute a Definitive
Agreement ("DA") expeditiously.
Alan Stephens, President and CEO of Coro commented, "Coro has
been seeking a partner for San Jorge for some time and we are very
pleased to have now reached agreement with Aterra and Solway for
them to acquire a 70% interest in the Project. We firmly believe
that the introduction of these two well-funded and experienced
companies to the Project will be well received by the provincial
and national governments in Argentina and result in its accelerated
development. This agreement will allow our shareholders to
participate in the future development and operation of San Jorge,
either through our 30% interest or by ownership of a valuable
NSR.
We are now fully focused on advancing our Chilean assets,
particularly the development of our Berta project, where we
recently announced a preliminary agreement with a third party to
treat pregnant leach solution at their plant. We also plan to
further drill test our exciting El Desesperado project, located in
the Chuquicamata district, and we are looking forward to the
results of our partner's work at Payen over the coming months. This
year of very difficult market conditions has been one of transition
for Coro, and we end it having successfully brought in partners for
San Jorge, Berta and Payen, which is a testament to the quality of
our projects."
Principal Terms of the HOA
- The Group may acquire a 70% interest in the Project by; paying
Coro US$200,000 upon signing the HOA, US$300,000 within 6 months
from signing the DA, US$500,000 within 12 months from signing the
DA, and US$500,000 within 24 months from signing the DA; funding
all of the costs required to advance the Project to the Exercise
Date, including an independent, bankable Definitive Feasibility
Study, completed to NI43-101 standards ("the BFS"); keeping the
Project and Minera San Jorge in good standing; and, prior to the
Exercise Date, paying all of the advance royalty payments pursuant
to the underlying San Jorge Purchase and Royalty Agreements between
Coro and its subsidiaries, and Franco-Nevada Corporation and
Franco-Nevada LRC Holdings Corp (together "Franco-Nevada").
- The Exercise Date is the date that the Group informs Coro of
its decision to place the Project into commercial production or the
completion of the BFS.
- The Group will be appointed Operator from the date of signature
of the HOA and for the duration of the Option Period.
- After the Exercise Date, the parties shall finance the further
development of the Project pro-rata to their interest in the
Project. In the event that Coro elects not to contribute its 30%
share of the costs of further development of the Project, its
interest will be subject to dilution. In the event that Coro's
interest is diluted to 10%, its interest shall immediately be
converted to a 2% NSR on the production of all metals from the
Project, except gold.
- The Group will have the option to acquire 100% of the Project
by paying Coro US$3,000,000 in cash at any time within 6 months
from signing the DA or US$5,000,000 in cash at any time within 18
months from signing the DA. The outstanding cash payments referred
to above would also become due and payable upon exercise of either
of these options to acquire 100% of the Project. In the event that
the Group elects to exercise its option to acquire a 100% interest
in the Project, Coro will retain a 2.5% NSR on the production of
all metals from the Project, except gold.
- Prior to the Exercise Date and upon the Group's completion of
an expenditure of US$10,000,000 on Project development and other
costs, the Group will earn a 50% interest in the Project. If the
Group elects not to proceed to the Exercise Date at its sole cost,
Coro and the Group shall form a 50/50 Joint Venture and may elect
to fund the outstanding Project costs on a pro-rata basis, with
both Parties being subject to dilution. In the event that either
Party's interest is diluted to 10%, its interest shall immediately
be converted to a 2% NSR on the production of all metals from the
Project, except gold.
- Franco-Nevada's consent, as required under the underlying San
Jorge Purchase and Royalty Agreements, is a condition precedent to
the occurrence of the earlier of (i) the execution of the DA, and
(ii) the Group earning or acquiring an interest in the Project or
MSJ. In the event that Franco-Nevada's consent is unreasonably
withheld, Coro shall be required to reimburse the Group for all
payments made to Franco-Nevada by the Investor and all payments
made to Coro by the Group, and other reasonable and verifiable
costs incurred directly on the Project under this HOA and the Group
shall have no further interest in the Project.
About Aterra Investments Ltd
Aterra Investments Ltd is a privately-held, investment
management firm, which invests in metals and mining projects from
late stage exploration to pre-production. Aterra's investment
portfolio is geographically diversified with projects in both
developed countries and frontier regions and includes more than 10
exploration, development and producing companies. Commodity focus
includes copper, silver, phosphates, zinc, lead, diamonds and
mineral sands.
About Solway Industries Ltd.
Solway Industries Ltd. is a subsidiary of the Solway Group,
which comprises a number of diversified companies with core
activities in mining, non-ferrous metals, chemicals, the cement
industry and real estate. Solway operates a ferronickel plant in
Ukraine, is developing nickel laterite projects in Indonesia and
Guatemala, and operates an open pit copper mine in Macedonia.
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 properties include the advanced
Berta copper leach project and the Payen, El Desesperado,
Llancahue, and Celeste copper exploration properties, all located
in Chile, and the advanced San Jorge copper-gold project, located
in Argentina.
For further information please visit the Company's website at
www.coromining.com or contact Michael Philpot, Executive
Vice-President at (604) 682 5546 or
investor.info@coromining.com
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 execution of agreements and future
payments 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.
About Benton Capital Corp.:
Benton Capital Corp. is a Canadian based junior which holds the
Goodchild Copper-Nickel-PGM project located 5km NE of Stillwater
Mining's Marathon Copper-PGM deposit currently being permitted for
production. Benton Capital Corp. also holds approximately 57.87
million shares (approximately 41.84%) of Coro Mining Corp.
(TSX:COP) - a Vancouver based copper exploration company with
projects located in South America.
On behalf of the Board of Directors of Benton Capital Corp.,
Stephen Stares, President
THE TSX-VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT
ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS
RELEASE.
The information contained herein contains "forward-looking
statements" within the meaning of applicable securities
legislation. Forward-looking statements relate to information that
is based on assumptions of management, forecasts of future results,
and estimates of amounts not yet determinable. Any statements that
express predictions, expectations, beliefs, plans, projections,
objectives, assumptions or future events or performance are not
statements of historical fact and may be "forward-looking
statements."
Benton Capital Corp.Stephen
StaresPresident807-475-7474807-475-7200www.bentoncapital.ca