Coro defers $2.5-million (U.S.) Berta final payment

Jun 11, 2014

CORO PROVIDES UPDATE ON BERTA PROJECT

Coro Mining Corp. has renegotiated the terms of the final payment due to the underlying owner of the Berta copper development project, located approximately 20 kilometres west of the village of Inca de Oro in the III region of Chile. The project is being developed by SCM Berta (SCMB), which is currently 87 per cent owned by Coro and 13 per cent by its partner, ProPipe, a Chilean engineering company, and ProPipe may increase its interest to 50 per cent by financing the continuing development costs, completing a positive preliminary economic assessment (PEA) and arranging 100 per cent of debt financing, non-recourse to Coro, for the project.

Modified terms

The payment of $2.5-million (U.S.) payable by SCMB on June 10, 2014, has been deferred as follows:

$250,000 (U.S.) payable on Aug. 14, 2014;
$2.25-million (U.S.) payable on Aug. 14, 2015; SCMB may elect to pay this amount in eight equal quarterly payments of $281,250 (U.S.), which will bear interest at LIBOR (London interbank offered rate).

In addition, under the modified terms, SCMB is permitted to commence production at Berta at any time after the Aug. 14, 2014, payment.

About Berta

SCMB intends to develop a heap-and-dump leach operation at Berta and has negotiated a contract with the owners of a nearby solvent extraction/electrowinning (SX/EW) plant, whereby they would sell water and sulphuric acid to SCMB and would purchase pregnant leach solution (PLS) from SCMB for a period of five years.

Development of the project would include the construction by SCMB of a pipeline between Berta and the third party’s processing facilities, as well as a crusher and heap-and-dump leach pads at the mine site. Subject to SCMB executing the contract with the third party, completing a positive PEA, receiving an approved environmental impact declaration (EID) and obtaining financing for the project, Berta is anticipated to produce 5,000 to 10,000 tonnes of cathode copper per year, contained in PLS.

The EID permitting process is nearing its conclusion, and the contract is currently completing the third party’s internal approval process. The engineering studies are virtually complete, and Coro anticipates that the PEA and the commercial terms agreed with the third party will be released once the contract is executed. Finally, ProPipe continues discussions with parties interested in financing the project.

Alan Stephens, FIMMM, president and chief executive officer of Coro Mining, a geologist with more than 38 years of experience, and a qualified person for the purposes of National Instrument 43-101, is responsible for the contents of this news release.

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