Trading Symbol:CCY
VANCOUVER,
Aug. 18, 2011 /PRNewswire/ - Catalyst
Copper Corp. (the "Company" or "Catalyst") is pleased
to announce today that it has closed its previously announced
non-brokered private placement (the "Offering") of
20,200,000 common shares of the Company at a price of $0.105 per share for gross proceeds of
$2,121,000. The Company paid
$29,085 as a finder's fee in
conjunction with the Offering.
The securities issued under the private
placements will be subject to a four-month hold period from
closing.
The Company intends to use the net proceeds of
the Offering to continue to expand the current NI 43-101 compliant
resource at La Verde project.
Pursuant to the private placement, Radcliffe
Foundation, a charitable organization controlled by Frank Giustra, acquired 12,647,619 common shares
of the Company, which, together with the 9,323,000 common shares
previously held represents an aggregate of 21,970,619 common shares
or 9.12% of the current issued and outstanding common shares of the
Company and 10.36% of the issued and outstanding common shares on a
partially diluted basis, assuming exercise of the 1,500,000
warrants and 1,845,000 options of the issuer previously held by
Radcliffe Foundation.
The Company is advised that Radcliffe Foundation
acquired these securities for investment purposes and has no
present intention to acquire further securities of the Issuer,
although it may in the future acquire or dispose of securities of
the Issuer, through the market, privately or otherwise, as
circumstances or market conditions warrant.
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.