Camino Minerals closes $4.6M deal with Stellar Investment Holdings for Maria Cecilia complex in Peru

Camino Minerals Corporation (CVE:COR) (OTCPINK:CAMZF) announced it has closed the $4.6 million deal to acquire the Maria Cecilia porphyry and skarn complex in Peru.

The transaction was with Denham Capital affiliate Stellar Investment Holdings LLC and British Virgin Islands company Minera Maria Cecilia Ltd, which controlled the mineral rights and titles covering the project.

Maria Cecilia consists of claims that cover 7,110 hectares that Camino believes has geological similarities to one of Peru’s largest copper mines, Antamina, located 100 kilometres away.

READ: Camino says geophysical survey of copper and gold targets is underway at its Los Chapitos project in Peru

Camino CEO Jay Chmelauskas told investors that the company plans to start drilling at its Los Chapitos project in August, followed by a program at Maria Cecilia.

“Our plans to drill the significant porphyry system identified at Maria Cecilia in Peru, provides Camino with another copper discovery opportunity in 2021 to add to our copper asset portfolio,” Chmelauskas said in a statement.

Denham Capital director Justin Manchin will join Camino’s board of directors following the transaction.

“With the Maria Cecilia transaction now closed, and Camino having completed its recent $7.5 million financing, the company is well positioned for its next phase of growth,” Manchin said. “I am looking forward to working closely with Jay and the rest of the Camino Board of Directors to build a leading junior mining company.”

Term sheet

As per the term sheet, Camino acquired all of the shares of Minera Maria Cecilia from Stellar under a share purchase agreement among Camino, Stellar, and Minera Maria Cecilia dated March 30, 2021. As consideration for the shares of Minera Maria Cecilia, Camino issued 23,193,098 shares in the company to Stellar at a price of $0.20 each for an aggregate purchase price of approximately $4,638,620.

Concurrent with the closing, Camino closed a subscription by Stellar for 2,941,176 units of Camino at a price of $0.17 per unit for aggregate gross proceeds of approximately $500,000. Each unit consists of one share and one-half of a non-transferable warrant, with each whole warrant entitling Stellar to purchase an additional share at a price of $0.25 until July 13, 2023.

Additionally, Camino and Stellar inked an investor rights agreement under which Stellar may not transfer any shares in Camino until July 13, 2022 without the company’s approval. Stellar has the right to participate in any future offering provided it owns at least a 10% stake in the company.

Camino also granted Stellar a contingent payment right requiring Camino to pay Stellar an additional $0.02 per pound for each additional pound of copper equivalent mineral resources uncovered beyond the amount included in the current NI 43-101 technical report on Maria Cecilia.

Contact Angela at [email protected]

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Story by ProactiveInvestors