Vancouver-based copper mining company Coro Mining Corp has agreed to receive a US$5 million loan from Greenstone Resources, a U.K. metals and mining private equity firm and Coro’s majority shareholder. The loan’s proceeds will be used for working capital and Coro co-owned SCM Berta SA, which holds several mining assets in Chile. The company said the transaction will also allow it time to consider alternative scenarios relating to its assets and funding options. Greenstone led Coro’s $16.2 mln private placement offering last year.
PRESS RELEASE
Coro Mining Announces $5m Debt Financing & Strategic Review
February 27, 2018 – Coro Mining Corp. (“Coro” or the “Company”) (TSX Symbol: COP) announces that it has entered into a credit agreement (the “Credit Agreement”) with its major shareholder, Greenstone Resources L.P.( “Greenstone ”) pursuant to which Greenstone has agreed to advance US$5,000,000 to Coro (the “Loan”).
Under the terms of the Credit Agreement, the Loan has an eleven month term and bears interest at 12% per annum until June 30, 2018, after which the interest will be increased to 15%. Greenstone will receive a 3% arrangement fee under the Credit Agreement, which will be payable on maturity. The proceeds of the Loan will be used for both general working capital at Coro and SCMB Berta.
“Following the positive results of step out drilling at Marimaca, progress on property consolidation around Marimaca and feedback from shareholders, the Board of Coro has committed to a Strategic Review,” commented President & CEO Luis Tondo. “This will consider alternative scenarios relating to the Company’s assets and an assessment of the various funding options available to Coro to maximize shareholder value. The US$5m addresses immediate funding requirements and provides time for the Board of Coro to complete its Strategic Review. Further announcements will be made in due course.”
About Coro Mining Corp.:
Coro’s strategy is to grow a mining business through the discovery, development and operation projects at any stage of development, which are well located with respect to infrastructure and water, have low permitting risk, and have the potential to achieve a short and cost effective timeline to production. The Company’s preference is for open pit heap leach copper projects, where minimizing capital investment and creating profitability are priorities and, where the likely capital cost is financeable relative to the Company’s market capitalization. The Company’s assets include the Marimaca development project; its 65% interest in the SCM Berta company, which owns the Berta mine, Nora plant and the El Jote project as well as the Llancahue prospect.
For further information:
Contact Naomi Nemeth, VP Communications/IR at +1 (647) 556 1023, +1 (604) 682 5546, Toll free +1 877 702 2676 or nnemeth@coromining.com
Visit our website site at www.coromining.com
Photo courtesy of Coro Mining Corp