Coro Mining arranges comprehensive C$46.7mln financing deal; shares boosted
Coro Mining Corp (TSE:COP) announced Tuesday that it has arranged a comprehensive C$46.7mln financing plan, comprising a closed premium non-brokered C$13.2mln private placement with an entity of the Tembo Capital private equity group and a forthcoming C$33.6mln rights offering. The plan fully finances Coro for the next year.
Shares of Coro Mining perked up 5.3% on Tuesday, at C$0.10.
Coro Mining is a copper-producing company with an aim to grow its Chilean copper production through the discovery, development and operation of “Coro type” deposits.
READ:Coro Mining advances Marimaca project with approval of environmental impact plan
“The premium placement and rights offering combination optimizes our shareholder and capital structures, which should allow us to move ahead with acquiring the Sierra Miranda claims surrounding Coro’s flagship Marimaca project and commence a fully funded exploration program on these properties, which I believe has significant potential,” said Coro’s president and chief executive officer Luis Tondo.
“The proceeds will also be used to pay off debt and fund our working capital needs. Consequently, I am confident that Coro now represents a premier investment opportunity in the junior copper sector, and places us in an unrivalled position to create significant value over the next 12 months.”
The company has closed the private placement consisting of common shares of the company raising gross proceeds of approximately C$13.2mln. Under the private placement, the company has issued 109,733,334 common shares at a price of C$0.12 cents per common share.
Tembo Capital has purchased all of the common shares issued pursuant to the private placement. Pursuant to the private placement Tembo Capital, for so long as it continues to hold at least 10 per cent of the outstanding common shares of Coro, on a non-diluted basis, will have (i) the right to nominate one member to the board of directors, and (ii) a pre-emptive right to maintain its pro rata interest in the common shares of Coro.
Plan will repay debt, acquire surrounding properties, and finance exploration program
Proceeds from the plan will repay debt, acquire surrounding properties, and finance exploration program and resource expansion at Marimaca.
Additionally, the introduction of new shareholder at a premium demonstrates significant value proposition.
“The board of directors welcomes Tembo Capital as a shareholder. Their willingness to invest at a premium and provide a standby guarantee for the rights offering is a solid endorsement of our Marimaca project and its growth potential. Tembo Capital is a well-known private equity group and we look forward to benefiting from their technical and strategic contributions.”
Story by ProactiveInvestors
Source: http://www.proactiveinvestors.com/companies/news/202421/coro-mining-arranges-comprehensive-c467mln-financing-deal-shares-boosted-202421.html
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