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Gold loves chaos and should be hitting new highs, especially with inflation coming down and with it, two rate cuts likely before year’s end.
Coronet Metals Inc. (“Coronet” or the “Company”) (TSX VENTURE:CRF.H) is pleased to announce that it has completed the acquisition of a 100-per-cent interest in Golden Eagle Resources Peru S.A.C. (“Golden Eagle”), the owner of the Yanamina Gold Project mining concessions located in Peru, from Westmag Resources Limited (“Westmag”) a wholly owned subsidiary of Latin Gold Limited.
The Company also reports that the TSX Venture Exchange has accepted the Company’s reactivation application. The Company anticipates the Company will commence trading as a Tier 2 listed issuer on the TSX Venture Exchange at the open of trading on Monday, June 6th under the symbol “CRF”.
Further to the Company’s press release dated March 28, 2011, the Company has paid to Westmag, a total of USD 7.5 million (USD $6.5 million cash and USD $1 million in Coronet shares at a deemed price of $0.30 per share) for the acquisition of Golden Eagle and a database of South American mineral property information owned by Latin Gold and Westmag. Golden Eagle is the registered owner of the mineral concessions that comprise the Yanamina (formerly “Paron”) advanced-stage Gold Project. The subsequent payments due to Latin Gold remain as set out in the Company’s January 4th, 2011 press release.
The Yanamina Gold Project is situated 40 km north of Barrick Gold’s Pierina Mine (7.5 million ounces Au) and 120 km south Alto Chicama/Laguna Norte Mines (9.1 million ounces Au). A February, 2011 NI 43-101 report commissioned by Coronet and completed by an independent consultant, ‘Southampton Associates’ of Toronto, estimated an indicated resource of 1,566,900 tonnes averaging 1.65 g/t and an inferred resource of 3,235,000 tonnes averaging 1.19 g/t. This technical report has been filed on SEDAR under the Company’s profile.
In conjunction with the acquisition of the Yanamina Gold Project, Coronet has closed on a non-brokered private placement of 36,172,010 Units amounting to $10,851,603. Each Unit consists of one common share of the Company and one-half of one common share purchase warrant (each whole warrant, a “Warrant”). Each Warrant entitles 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 of the Warrants is 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. Latin Gold, as part of the acquisition, agreed to purchase a total of 3,261,183 Units in the non-brokered private placement.
In addition to funding the purchase of the Yanamina Gold Project, and as outlined in the Southampton NI 43-101 technical report, proceeds from this placement will be used to fund a 10,000 metre drill program as well as for general working capital purposes.
Read the full news release here.
