Catalyst to be granted option to purchase La Verde project
Trading Symbol: CCY
VANCOUVER, March 4, 2013 /PRNewswire/ - Catalyst Copper Corp. (TSXV: CCY) (the "Company" or "Catalyst") announces that it has received a letter dated March 1, 2013 (the "Offer Letter"), from an affiliate of Teck Resources Limited ("Teck") offering to grant Catalyst's wholly owned Mexican subsidiary, Minera Hill 29 S.A de C.V. ("Minera Hill"), the option to acquire Teck's interest in the La Verde property (the "Purchase Option"). The Purchase Option is subject to Teck, Catalyst and Minera Hill negotiating and signing a binding agreement (the "Definitive Agreement") by April 2, 2013, and is subject to TSX-V approval.
Under the proposed Purchase Option, Minera Hill would have 180 days from signing the Definitive Agreement to acquire Teck's interest in the La Verde property by either (1) making a cash payment of $20 million to Teck; or (2) making a payment of $25 million to Teck in a combination of cash and shares (of Catalyst), provided that at least 50% of this consideration is in cash, with the remainder of the consideration paid in shares of Catalyst; provided that Teck's ultimate shareholding in Catalyst does not exceed 19.9%,post issue. In consideration, the Company will agree that if it does not exercise the Purchase Option, the date Teck may elect to invoke its option to increase its interest in the property from 40% to 60% will be extended to the date that is 181 days from the signing of the Definitive Agreement.
If the parties are unable to reach a Definitive Agreement with respect to the Purchase Option by April 2, 2013, the Offer Letter serves as notice to Catalyst that Teck Invokes its option to increase its interest in the property to 60% under the terms of the December 2009 Option Agreement among the parties by incurring $20 million in Expenditures on the La Verde property over a three year period of time.
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.