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Coronet Metals, Inc. ("Coronet" or the "Company")
(TSX VENTURE:CRF.H
- News) announces that,
in connection with its acquisition of the Yanamina
Gold Project in Peru, it will be proceeding with a non-brokered private
placement to raise between $10,000,000 and $15,000,000 by the issuance of
between 33,333,333 and 50,000,000 units (the "Units") at a price of
$0.30 per Unit.
Each Unit will consist of one common share of the Company (a
"Common Share") and one-half of one non-transferable Common Share
purchase warrant (each whole warrant, a "Warrant"). Each Warrant
will entitle the holder, on exercise thereof, to purchase one additional
Common Share at a price of $0.50 for a period of 24 months from the
completion of the Offering. The expiry date of the Warrants will be subject
to acceleration such that, should the volume weighted average price of the
Common Shares exceed $1.00 for twenty consecutive trading days, the Company
may notify the holders of the Warrants that the Warrants will expire on the
30th day after such notice is given unless exercised before such date.
The Company may pay a finder's fee in connection with the private
placement.
Further to the Company's press release dated January 4, 2011, at
closing of the acquisition the Company will pay to Latin Gold Limited, or its
subsidiary, a total of U$7.5 million (US$6.5 million cash and US$1 million in
Coronet shares) for the acquisition of Golden Eagle Resources Peru S.A.C.
("Golden Eagle") and a database of geological information owned by
Latin Gold and its subsidiary. Golden Eagle is the registered owner of the
mineral concessions that comprise the Yanamina Gold
Project. The subsequent payments due to Latin Gold remain as set out in the
January 4th press release.
The Company also announces that at closing it will be issuing
4,333,833 stock options to certain directors, senior officers, employees and
consultants of the Company. The stock options will be exercisable for 4 years
at an exercise price of $0.36.
The Company is in the process of completing its filings with the TSX
Venture Exchange (the "Exchange") which includes a review of the
Company's technical report by the Exchange. The Company anticipates being in
a position to close the transaction by April 15, 2011.
The Yanamina property is located in
north-central Peru in the department of Ancash. It lies
40km to the north and 120km to the south respectively of Barrick
Gold's Pierina (7.5 million ounces gold) and Alto Chicama/Lagunas Norte (9.1
million ounces) gold mines.
An NI 43-101 technical report, prepared for the Company by independent
consultant Southampton Associates, recommends a $3.5 million drill program be
conducted by the Company to further explore and potentially expand the
existing resource. Partial proceeds from the above referenced financing are
slated to fund the prescribed drilling and exploration program.
Coronet Metals, Inc. is an emerging gold company focused on the
acquisition, exploration and development of gold mineral resource properties
in proven mining jurisdictions in Latin America.
This news release contains certain forward-looking statements, and
such statements involve risks and uncertainties. The results or events
predicted may differ materially from actual results or events. Any
forward-looking statement speaks only as of the date of this news release.
Except as may be required by applicable securities laws, the Company
disclaims any intent or obligation to update any forward-looking statement,
whether as a result of new information, future events or results, or any
other occurrence.
Neither the TSX Venture Exchange nor its regulation services provider
(as that term is defined in the policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release.
Contact:
Joel Dumaresq
Coronet Metals Inc.
President
(604) 648-3506
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