Coro Mining Corp. intends to consolidate its ownership of the Marimaca copper project in Chile by acquiring the remaining 49% stake it does not already own for US$12 million.
The company said Sept. 10 that it will pay US$6 million on signing of the definitive purchase agreement and make two US$3 million payments after 12 and 24 months, along with transferring certain noncore mineral claims to the sellers.
Additionally, the sellers will receive a 1.5% net smelter return royalty on the claims, with Coro retaining an option to buy back a one percentage point royalty for US$4 million within 24 months from the start of commercial production.
The company is conducting a non-brokered private placement of 145,863,926 shares at 11.5 Canadian cents each to raise a total of C$16.8 million, which will be subscribed by the company's two largest shareholders, Greenstone Resources LP and Ndovu Capital XIV BV.
Coro will use the proceeds to make the initial payment, with the remaining to be used to advance a mineral resource estimate, a preliminary economic assessment towards completion in early 2020, other land option payments and general working capital purposes.
The offering to Ndovu Capital and Greenstone Capital is expected to close on Sept. 11 and Sept. 17, respectively. Coro expects to release a new Marimaca resource estimate in the fourth quarter.
In May, Coro expanded Marimaca by 34% to 667 hectares after acquiring the adjacent Llanos and Mercedes claims for US$2 million.
