Coro options 70% of Llancahue to Penoles

Nov 6, 2014

CORO ANNOUNCES OPTIONING OF LLANCAHUE PROPERTY TO MINERA PENOLES DE CHILE LIMITADA

Coro Mining Corp. has signed an option agreement with Minera Penoles de Chile Ltda., a subsidiary of Mexican mining company Industrias Penoles SAB de CV, for the latter to acquire a 70-per-cent interest in Coro’s Llancahue project, located 300 kilometres south of Santiago in the VII region of Chile.

Alan Stephens, president and chief executive officer of Coro, commented: “We are very pleased that Penoles has entered into an option to acquire an interest in our Llancahue project. The previous drilling carried out in 2009 intersected attractive copper-molybdenum-silver mineralization in a possible porphyry environment, and we look forward to our new partner having success in encountering more of the same.”

Option terms

The following payments, totalling $6-million (U.S.), are required for Penoles to acquire its 70-per-cent interest in the project:

$150,000 (U.S.) on signing the option agreement (paid);
$200,000 (U.S.) on or before 12 months of signing;
$250,000 (U.S.) on or before 24 months of signing;
$300,000 (U.S.) on or before 36 months of signing;
$400,000 (U.S.) on or before 48 months of signing;
$4.7-million (U.S.) on or before 60 months of signing.

Additional terms:

Upon exercise of the option, the parties will form a new company (Newco) (70 per cent Penoles/30 per cent Coro);
On or before 60 months, Penoles must complete a resource estimate prepared in accordance with National Instrument 43-101 at its sole cost;
If Coro’s interest in Newco falls to 10 per cent, it immediately converts to a 2.5-per-cent NSR (net smelter royalty);
Penoles has a one-time right, exercisable within 90 days of exercising its option for 70 per cent, to acquire Coro’s 30-per-cent interest for $6-million (U.S.) plus a 1.5-per-cent NSR;
Penoles may withdraw from the agreement at any time after having made the first payment of $150,000 (U.S.).

About Llancahue

The Llancahue project is 100 per cent owned by Coro and is located 38 km south west of the city of Talca in the VII region of central Chile, at an elevation of less than 200 metres above sea level. In 2009, two reverse circulation drill programs were completed, returning a best intercept of 100 m at 1.37 per cent copper, as disclosed in the company’s news release of May 28, 2009. The drilling to date suggests that this mineralization, which occurs in a porphyritic intrusive and its brecciated contact zone, may be of restricted areal extent. However, the intensity of the alteration and the accompanying high-grade copper-molybdenum mineralization, together with the extensive propylitic halo, support the concept that a larger body of mineralized diorite or breccia complex may be present.

Alan Stephens, FIMMM, president and CEO of Coro Mining, a geologist with more than 39 years of experience and a qualified person for the purposes of NI 43-101, is responsible for the contents of this news release.

http://www.coromining.com/s/newsreleases.asp