Coro Mining Corp. (TSX: COP) intends to close a non-brokered private placement financing of up to 107,680,000 common shares at $0.15 per share for gross proceeds of up to $16,152,000.
Proceeds will be used to fund the acquisition of Minera Rayrock Ltda., continued exploration of the company’s Marimaca Project and working capital purposes.
Greenstone Resources L.P., Coro’s major shareholder, will exercise its pre-emptive right to maintain its 55.66% share position and will acquire a minimum of 55,934,464 common shares under the private placement. If no other subscribers participate in the private placement, Greenstone has agreed to acquire all 107,680,000 common shares being offered, being 22.18% of the total outstanding common shares, resulting in Greenstone’s ownership percentage increasing to 63.71% of the total outstanding common shares.
Greenstone participated in Coro’s December 2016 private placement financing, acquiring 29,825,874 common shares at that time.
Coro intends to seek this approval by way of a written consent resolution of at least 50% of disinterested shareholders (being shareholders other than Greenstone). The private placement also remains subject to approval of the Toronto Stock Exchange.
photo credit: Coro Mining