Trading Symbol: CCY
VANCOUVER,
July 29, 2011 /PRNewswire/ - Catalyst
Copper Corp. (the "Company" or "Catalyst") is
undertaking a non-brokered private placement (the "Offering") of up
to 20,000,000 shares at a price of $0.105 per share for gross proceeds of Cdn
$2,100,000.
A finders' fee in cash of up to 6% on
$750,000 of the financing and 1% on
the balance may be paid in accordance with TSX Venture Exchange
policy.
The Company intends to use the net proceeds of
the Offering to continue to expand the current NI 43-101 compliant
resource at the La Verde project
and begin an environmental impact survey. During 2011, Catalyst
plans to drill a minimum of 20,000 meters at La Verde. Additional work planned for 2011
includes environmental studies, metallurgical test work and
updating the NI 43-101 resource estimate to incorporate new drill
results. Drilling at La Verde for
the 2011 exploration program commenced on January 28, 2011. As of July 27, 2011 thirteen holes had been completed
for a total of 9256 meters of the planned 20,000 meter program.
The Offering is subject to receipt of all
necessary corporate and regulatory approvals, including the
acceptance of the TSX Venture Exchange.
About La
Verde
La Verde is
located in an area with excellent infrastructure. Power, rail and
water all cross the property. Lazaro
Cardenas, Mexico's third largest port on the Pacific Ocean
coast is 180 km from the site. Significant upside potential remains
for the two known zones of porphyry style copper, gold and
molybdenum mineralization as the 2010 drill program has shown both
deposits remain open to depth and along strike.
La Verde
property is subject to an option agreement with a Mexican
subsidiary of Teck Resources Limited (Teck) whereby Catalyst's 100%
Mexican subsidiary, Minera Hill 29,
may earn a 60% interest in La
Verde by making US$10,000,000
in exploration expenditures (including 30,000 meters of drilling
and 200 kilometers of IP) by December 31,
2012. Upon Catalyst earning a 60% interest, Teck has the
option to increase its interest to 60% by incurring aggregate
expenditures equal to two times the amount spent by Catalyst.
Should Teck fail to exercise its option to earn a 60% interest,
Catalyst can acquire a 100% interest in La Verde by paying to Teck US$20 million. The property is subject to an
underlying 0.5% NSR.
ON BEHALF OF THE BOARD OF DIRECTORS OF
CATALYST COPPER CORP.
"John W. Greenslade"
John W. Greenslade - President,
CEO (Director)
Certain information set forth in this news release may
contain forward-looking statements that involve substantial known
and unknown risks and uncertainties. These forward-looking
statements are subject to numerous risks and uncertainties, certain
of which are beyond the control of the Company, including, but not
limited to, risks associated with mineral exploration and mining
activities, the impact of general economic conditions, industry
conditions, dependence upon regulatory approvals, and the
uncertainty of obtaining additional financing. Readers are
cautioned that the assumptions used in the preparation of such
information, although considered reasonable at the time of
preparation, may prove to be imprecise and, as such, undue reliance
should not be placed on forward-looking statements. Neither TSX
Venture Exchange nor its Regulation Services Provider (as that term
is defined in the policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this
release.
SOURCE Catalyst Copper Corp.