Trading Symbol: CCY
VANCOUVER, Feb. 20, 2013 /PRNewswire/ - Catalyst Copper Corp. (the "Company" or "Catalyst") is undertaking a non- brokered private placement (the "Offering") of up to 10,000,000 units at a price of $0.06 per unit for gross proceeds of Cdn $600,000.
Each unit will consist of one common share and one half of a common share purchase warrant. Each whole warrant will entitle its holder to purchase one additional common share of the Company for five years from the closing date, at a price of $0.12 per common share. The common shares issued under the Offering will be subject to a four-month hold period from the date of closing. A finders' fee on the gross proceeds may be paid in accordance with TSX-Venture Exchange policy.
The Company intends to use the net proceeds of the Offering to complete the remainder of its financial commitments to acquire an interest in the La Verde copper project and for general working capital.
The Offering is subject to receipt of the acceptance of the TSX Venture Exchange.
About La Verde
La Verde is located in an area with excellent infrastructure: Power, rail and water. Lazaro Cardenas, Mexico's third largest port on the Pacific Ocean is 180 km from the site. Significant upside potential remains for the two known zones of porphyry style copper, gold and silver mineralization as drill programs have shown both deposits remain open to depth and along strike.
La Verde property is subject to an option agreement with a Mexican subsidiary of Teck Resources Limited (Teck) whereby Catalyst's 100% Mexican subsidiary, Minera Hill 29, may earn a 60% interest in La Verde by making US$10,000,000 in exploration expenditures (including 30,000 meters of drilling and 200 kilometers of IP) by December 31, 2012. Catalyst has delivered notice to Teck's Mexican subsidiary that it has met its expenditure commitments. Upon Catalyst earning its 60% interest, Teck's subsidiary has the option, by providing notice to Catalyst by March 3, 2013, to increase its interest to 60% by incurring aggregate expenditures equal to two times the amount spent by Catalyst. Should Teck fail to exercise its option to earn a 60% interest, Catalyst can acquire a 100% interest in La Verde by paying to Teck US$20 million. The property is subject to an underlying 0.5% NSR Royalty.
ON BEHALF OF THE BOARD OF DIRECTORS OF
CATALYST COPPER CORP.
"John W. Greenslade"
JOHN GREENSLADE, PRESIDENT, CEO & DIRECTOR
Certain information set forth in this news release may contain forward-looking statements that involve substantial known and unknown risks and uncertainties. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond the control of the Company, including, but not limited to, risks associated with mineral exploration and mining activities, the impact of general economic conditions, industry conditions, dependence upon regulatory approvals, and the uncertainty of obtaining additional financing. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. Neither 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.
SOURCE Catalyst Copper Corp.