VANCOUVER, Aug. 18, 2011 /PRNewswire/ - Catalyst Copper Corp. (the "Company" or "Catalyst") is pleased to announce today that it has closed its previously announced non-brokered private placement (the "Offering") of 20,200,000 common shares of the Company at a price of $0.105 per share for gross proceeds of $2,121,000. The Company paid $29,085 as a finder's fee in conjunction with the Offering.
The securities issued under the private placements will be subject to a four-month hold period from closing.
The Company intends to use the net proceeds of the Offering to continue to expand the current NI 43-101 compliant resource at La Verde project.
Pursuant to the private placement, Radcliffe Foundation, a charitable organization controlled by Frank Giustra, acquired 12,647,619 common shares of the Company, which, together with the 9,323,000 common shares previously held represents an aggregate of 21,970,619 common shares or 9.12% of the current issued and outstanding common shares of the Company and 10.36% of the issued and outstanding common shares on a partially diluted basis, assuming exercise of the 1,500,000 warrants and 1,845,000 options of the issuer previously held by Radcliffe Foundation.
The Company is advised that Radcliffe Foundation acquired these securities for investment purposes and has no present intention to acquire further securities of the Issuer, although it may in the future acquire or dispose of securities of the Issuer, through the market, privately or otherwise, as circumstances or market conditions warrant.
About La Verde
La Verde is located in an area with excellent infrastructure. Power, rail and water all cross the property. Lazaro Cardenas, Mexico's third largest port on the Pacific Ocean coast is 180 km from the site. Significant upside potential remains for the two known zones of porphyry style copper, gold and molybdenum mineralization as the 2010 drill program has 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. Upon Catalyst earning a 60% interest, Teck has the option 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.
ON BEHALF OF THE BOARD OF DIRECTORS OF
CATALYST COPPER CORP.
"John W. Greenslade"
John W. 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.