Trading Symbol: CCY
VANCOUVER, Sept. 16, 2014 /CNW/ - Catalyst Copper Corp. ("Catalyst" or the "Company") (News - Market indicators) announces that further to its news release dated August 29, 2014, it has closed its non-brokered private placement of 2,100,000 units at a price of $0.30 per unit for gross proceeds of $630,000. Each unit consists of one common share and one full common share purchase warrant. Each whole common share purchase warrant will be exercisable at $0.40 per common share until September 15, 2017. The securities issued in connection with this private placement are subject to a four month statutory hold period expiring on January 16, 2015. Proceeds will be used for general working capital and to explore other potential opportunities.
The Company also announces the appointment of Paul Ireland as Chief Financial Officer, Purni Parikh as Vice President Corporate Secretary and Letitia Cornacchia as Vice President Investor Relations and Corporate Communications. Mr. Ireland is a Chartered Accountant with extensive financial experience in the mining and forestry sectors and is currently the CFO of Wildcat Silver Corporation. Other recent CFO roles include with Ventana Gold Corp., Western Forest Products Inc. and Diavik Diamond Mines Inc. Ms. Parikh brings extensive business and corporate governance experience from 20 years in the mining sector and is currently Vice President Corporate Secretary of Wildcat Silver Corporation and Plata Latina Minerals Corporation and previously held the same positions with Augusta Resource Corporation and Ventana Gold Corp. Ms. Cornacchia brings over 10 years of experience in investor relations, corporate communications and finance largely in the mining industry and is currently Vice President Investor Relations of Wildcat Silver Corporation and Plata Latina Minerals Corporation. She previously held the same positions with Augusta Resource Corporation and Ventana Gold Corp. and before that was Director of Investor Relations at Yamana Gold Corporation.
Mr. Ireland and Ms. Parikh have replaced Jeremy Crichton who has tendered his resignation as Chief Financial Officer and Corporate Secretary. The Board wishes to thank Mr. Crichton for his past service and wishes him every success in his future endeavours.
Pursuant to the private placement, Augusta Investments Inc., a company owned and controlled by Richard Warke, acquired 700,000 units at a price of $0.30 per unit which consists of 700,000 common shares, representing 2.23% of the issued and outstanding common shares and 700,000 warrants representing 3.04% of the issued and outstanding warrants of the Company. As a result of the acquisition of securities described above, Mr. Warke indirectly beneficially owns in aggregate 5,661,904 common shares of Catalyst, representing 18.04% of the current issued and outstanding shares of Catalyst and would own 11,190,475 common shares, representing 30.32% on a partially diluted basis, assuming the exercise of 5,528,571 warrants. Also pursuant to the private placement, The Radcliffe Foundation, a charitable organization controlled by Frank Giustra, acquired 700,000 units at a price of $0.30 per unit which consists of 700,000 common shares, representing 2.23% of the issued and outstanding common shares and 700,000 warrants representing 3.04% of the issued and outstanding warrants of the Company. As a result of the acquisition of securities described above, Mr. Giustra indirectly beneficially owns and/or controls in aggregate 4,369,123 common shares of Catalyst representing 13.92% of the current issued and outstanding shares of Catalyst and would own and/or control 7,792,961 common shares, representing 22.39% on a partially diluted basis, assuming the exercise of 3,376,171 warrants and 47,667 options. The Company further announces that pursuant to the private placement, Ian Telfer acquired 675,000 units at a price of $0.30 per unit which consists of 675,000 common shares, representing 2.15% of the issued and outstanding common shares and 675,000 warrants representing 2.93% of the issued and outstanding warrants of the Company. As a result of the acquisition of securities described above, Mr. Telfer owns 6,275,000 common shares of Catalyst, representing 19.99% of the current issued and outstanding shares of Catalyst and would own 12,550,000 common shares, representing 33.32% on a partially diluted basis, assuming the exercise of 6,275,000 warrants.
Each of Messrs. Warke, Giustra and Telfer have signed a Letter of Undertaking to the TSX Venture Exchange stating that without receiving prior approval of the Company's shareholders, they will not exercise their warrants at any time when such exercise would increase their ownership of common shares of the Company to 20% or more of the issued capital.
The Company has been advised that Richard Warke and his related entities, Frank Giustra and his related entities, and Ian Telfer have acquired these securities for investment purposes and have no present intention to acquire further securities of the Company, although they may in the future acquire or dispose of securities of the Company, through the market, privately or otherwise, as circumstances or market conditions warrant.
About Catalyst Copper:
Catalyst Copper Corp. is a copper and base metal company with a focus on copper mining projects in Mexico. Our current focus is the La Verde copper property, which is situated in the Sierra Madre del Sur approximately 320 kilometres west of Mexico City in Michoacán State with excellent infrastructure: roads, rail, water and power. Lazaro Cardenas, Mexico's third largest port on the Pacific Ocean is 180 km from the site. A 43-101 Technical Report dated September 30, 2012 on the La Verde property is filed on Sedar.
ON BEHALF OF THE BOARD OF DIRECTORS OF
CATALYST COPPER CORP.
"Richard Warke"
Richard Warke – CEO, President & 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 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.
SOURCE Catalyst Copper Corp.
For further information: please contact the Company: (604) 687-1717