VANCOUVER, March 5, 2013 /PRNewswire/ - Catalyst Copper Corp. (TSXV: CCY) (the "Company" or "Catalyst") is pleased to announce today that it has closed the first tranche, of 4,066,667 units for proceeds of $244,000, of its previously announced non-brokered private placement of 10,000,000 units (the "Offering") of the Company at a price of $0.06 per unit.
The Company elected not to complete the entire 10,000,000 units announced February 20, 2013 due to the expected decision from Teck Resources Limited in regards to Catalyst's La Verde Project, Mexico on or before March 4, 2013. It elected to cut-off acceptance of subscription agreements as of February 27, 2013. Once a decision is received from Teck Resources Limited, the Company will look at whether to proceed with the balance of the offering at the higher of the $0.06/unit or a post-announcement price.
The Corporation intends to use the proceeds from the sale of the Units to meet ongoing concession fees and site maintenance at the La Verde project and general working capital.
Each unit consists 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 until five (5) years from the closing date, at a price of $0.12 per common share. The securities issued under the private placements will be subject to a four-month hold period ending July 4, 2013.
Insiders of the Company purchased 3,166,667 units of the 4,066,667 units (~ 78%) of in the first tranche.
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.
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.