Coro Mining Corp. (TSX: COP) has entered into a credit agreement with its major shareholder, Greenstone Resources L.P. for a US $5,000,000 debt facility.
The funding will address immediate funding requirements and provides time for the Coro board to complete its strategic review relating to the company’s assets and an assessment of the various funding options.
Greenstone Resources L.P. and its affiliate control over 61% of Coro Mining outstanding shares.
photo credit: Coro Mining
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.
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