VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 25, 2011) - Coronet Metals Inc. (TSX VENTURE:CRF) -
Mr. Joel Dumaresq, CEO, reports:
On June 1, 2011, Coronet Metals Inc. ("Coronet") closed a non-brokered CDN$10.8 million private placement in conjunction with Coronet's US$14 million acquisition of the Yanamina gold project ("Yanamina") in Ancash province, Peru. US$5.5 million of the proceeds from this financing were to be used for the initial payments to Latin Gold Limited ("Latin"), an Australian stock exchange listed company.
Upon completion of the financing and in accordance with the share and asset purchase agreements ("Agreements") executed by Coronet and Latin, Coronet paid US$1.75 million cash and issued 3.3 million shares in Coronet common stock to Latin. A further US$3.75 million was being held by Coronet subject to Latin delivering a favourable Peruvian tax ruling on the structure of the purchase arrangement. As of August 9, 2011 Coronet is in receipt of the necessary tax ruling.
Coronet however, has since determined that there were issues with the level of support from the local community for the project as well as the approvals and permits necessary to move the Yanamina project towards production.
These issues are expected to delay the commencement of the definition drilling program that was outlined in the NI 43-101 technical report on Yanamina prepared earlier this year on Coronet's behalf.
Coronet is retaining the US$3.75 million, attempting to renegotiate the terms of the Agreements with Latin in the hope to reach a resolution to the mutual benefit of both companies.
Consistent with its mandate to acquire other advanced-stage gold mining projects, Coronet has reviewed over 20 potential projects and concessions since closing the June 1, 2011 private placement. The Company is presently conducting due diligence and negotiations on three such advanced-stage projects that meet its acquisition criteria.
Coronet's management team has extensive experience in moving advanced stage projects with existing resource bases through to production. The focus of the Peruvian search is for permitted gold and silver producing assets or near-permitted projects with existing resources, the prospect of near-term cash flow, and the potential to expand.
About Coronet Metals
Coronet Metals Inc. is a TSX-Venture Exchange listed company pursuing gold opportunities in Peru. For further information on Coronet, please visit the Company's website at www.coronetmetals.com.
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.