Coronet Renegotiates Yanamina Agreement, Pursues Additional Acquisitions
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 11/02/11 -- Mr. Joel Dumaresq, CEO, reports:
Coronet Metals Inc. (TSX VENTURE: CRF) ('Coronet') is pleased to announce that it has completed an amended Share Purchase Agreement with Latin Gold Limited ('Latin'), reducing Coronet's purchase price of the Yanamina advanced gold project ('Yanamina') in Ancash province, Peru.
Coronet and Latin have renegotiated the terms such that Coronet will retain US$2.25 million of the US$3.75 million that was held by Coronet at closing. US$1.5 million will be released to Latin after they place their Coronet shares in escrow. (See below). Also, as part of the amendment, Coronet will issue Latin US$1 million worth of Coronet shares after the first gold pour at Yanamina. This amendment effectively reduces the original US$14 million purchase consideration to US$12.75 million.
Per the amended agreement, Latin agrees to place 6,533,386 shares in escrow for an extended period of time. Half of shares will now be released from escrow on October 2, 2012 and the remainder will now be released on October 2, 2013.
Mr. Joel Dumaresq, CEO of Coronet Metals states: 'With the purchase terms renegotiated, Coronet has hired an experienced team of Peruvian social specialists to engage with the local community to obtain the approvals and permits necessary to move the Yanamina project towards production. Our team is confident that they can establish broad community support for the project.'
Coronet's management team has extensive experience in moving advanced stage projects through to production. The focus of Coronet's search for additional Peruvian acquisitions is for permitted or near permitted gold and silver assets with existing resources, the prospect of near-term cash flow, and the potential to expand.
The Company is continuing due diligence and negotiations on three advanced-stage projects that meet its acquisition criteria. The Company anticipates additional updates in Q4, 2011 regarding these acquisition targets.
About Coronet Metals
Coronet Metals is well-funded and positioned to build a substantial junior gold mining and exploration enterprise by acquiring advanced, near production, low cost assets in Latin American countries. The proven management team has a strong base of contacts in South America, and experience in all aspects of the development and financing of resource projects.
This news release contains certain forward-looking statements, and such statements involve risks and uncertainties. The results or events predicted may differ materially from actual results or events. Any forward-looking statement speaks only as of the date of this news release. Except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results, or any other occurrence.
Neither the 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.
Contacts:
Coronet Metals Inc.
Joel Dumaresq
Chief Executive Officer and Director
+1 604 306 4000
joel@coronetmetals.com
www.coronetmetals.com
Doyle Investments Inc.
+1 604 608 0824 or Toll free: +1 877 608 0829
ir@doyleinvestments.com
