November 6, 2014, Coro Mining Corp. (“Coro” or the “Company”) (TSX Symbol: COP) is pleased to announce that it has signed an option agreement with Minera Peñoles de Chile Ltda (“Peñoles”), a subsidiary of Mexican mining company, Industrias Peñoles SAB de CV, for the latter to acquire a 70% interest in Coro’s Llancahue project, located 300km south of Santiago in the VII Region of Chile.
Alan Stephens, President and CEO of Coro commented, “We are very pleased that Peñoles has entered into an option to acquire an interest in our Llancahue project. The previous drilling carried out in 2009 intersected attractive copper-molybdenum-silver mineralization in a possible porphyry environment, and we look forward to our new partner having success in encountering more of the same.”
The following payments, totalling US$6 million, are required for Peñoles to acquire its 70% interest in the project;
- US$150,000 on signing the option agreement (paid)
- US$200,000 on or before 12 months of signing
- US$250,000 on or before 24 months “
- US$300,000 on or before 36 months “
- US$400,000 on or before 48 months “
- US$4.7 million on or before 60 months “
- Upon exercise of the option, the parties will form a Newco (70% Peñoles /30% Coro)
- On or before 60 months, Peñoles must complete a resource estimate prepared in accordance with NI43-101 at its sole cost
- If Coro’s interest in Newco falls to 10%, it immediately converts to a 2.5% NSR
- Peñoles has a one-time right, exercisable within 90 days of exercising its option to 70%, to acquire Coro’s 30% interest for US$6 million plus a 1.5% NSR
- Peñoles may withdraw from the agreement at any time after having made the first payment of US$150,000.
The Llancahue project is 100% owned by Coro and is located 38km south west of the City Of Talca in the VII Region of central Chile, at an elevation of less than 200m asl. In 2009, two reverse circulation drill programs were completed, returning a best intercept of 100m at 1.37% copper, as disclosed in the Company’s news release of May 28 2009. The drilling to date suggests that this mineralization, which occurs in a porphyritic intrusive and its brecciated contact zone, may be of restricted areal extent. However, the intensity of the alteration and the accompanying high grade copper molybdenum mineralization, together with the extensive propylitic halo, support the concept that a larger body of mineralized diorite or breccia complex may be present.
Alan Stephens, FIMMM, President and CEO, of Coro Mining Corp, a geologist with more than 39 years of experience, and a Qualified Person for the purposes of NI 43-101, is responsible for the contents of this news release.
Coro’s strategy is to grow a mining business through the discovery, development and operation of “Coro type” deposits. These are defined as projects at whatever stage of development, that are well located with respect to infrastructure and water, which have low permitting risk, and which have the potential to achieve a short and cost effective timeline to production. Our preference is for open pit heap leach copper projects, where we will seek to minimise capital investment rather than maximise NPV, where we will prioritise profitability over production rate, and finally, where the likely capital cost is financeable relative to our market capitalization. Partners will be sought for any attractive projects identified that we do not have the financial capacity to develop alone. Coro’s properties include the Berta pre-production project, the Planta Prat copper development project, the Celeste Sur iron ore project and the Marimaca & Llancahue copper exploration prospects, all located in Chile. The advanced San Jorge copper-gold project located in Argentina has been optioned to Aterra Capital and Solway Industries.
CORO MINING CORP.
President and CEO
For further information please visit the Company’s website at www.coromining.com or contact Michael Philpot, Executive Vice-President at (604) 682 5546 or firstname.lastname@example.org
This news release includes certain “forward-looking statements” under applicable Canadian securities legislation. Such forward-looking statements or information, including but not limited to those with respect to a future development of properties and payments, involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements or information. Such factors include, among others, the actual price of copper and iron, the factual results of current and future exploration, development and mining activities, changes in project parameters as plans continue to be evaluated, as well as those factors disclosed in the Company’s documents filed from time to time with the securities regulators in the Provinces of British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, New Brunswick, Nova Scotia, Prince Edward Island and Newfoundland and Labrador.