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 email@example.com
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This news release includes certain “forward-looking statements” under applicable Canadian securities legislation. Such forward-looking statements or information, include but are not limited to the announcements of a strategic review. Forward-looking statements involve known and unknown risks, uncertainties and other factors which are beyond Coro’s ability to predict or control and may cause Coro’s actual results, performance or achievements to be materially different from any of its future results, performance or achievements expressed or implied by forward-looking statements. These risks, uncertainties and other factors include, but are not limited to, the ability to finance. Such forward-looking statements are also based on a number of assumptions which may prove to be incorrect, 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.
Accordingly, readers should not place undue reliance on forward-looking statements. Coro undertakes no obligation to update publicly or otherwise revise any forward-looking statements contained herein whether as a result of new information or future events or otherwise, except as may be required by law.