Trading Symbol: CCY
VANCOUVER , July 21, 2014 /CNW/ - Catalyst Copper Corp. ("Catalyst" or the "Company") (TSX VENTURE:CCY) announces that further to its news release dated June 23, 2014 , it has closed its non-brokered private placement of 20,000,000 units at a price of $0.07 per unit for gross proceeds of $1,400,000 . Each unit consists of one common share and one full common share purchase warrant. Each whole common share purchase warrant will be exercisable at $0.10 per common share until July 21, 2019 . The securities issued in connection with this private placement are subject to a four month statutory hold period expiring on November 22, 2014 . Proceeds will be used for payment of costs of the study by JDS Energy and Mining Inc., existing payables including $1,200,000 of secured loans, and for general working capital.
The Company also announces that pursuant to the private placement, Augusta Investments Inc., a company owned and controlled by Richard Warke , acquired 3,400,000 units at a price of $0.07 per unit which consists of 3,400,000 common shares, representing 11.6% of the issued and outstanding common shares and 3,400,000 warrants representing 16.2% of the issued and outstanding warrants of the Company. In addition, a company 50% beneficially owned by Richard Warke acquired 2,857,143 units at a price of $0.07 per unit. 1,428,571 common shares (50% of 2,857,143) represents 4.9% of the issued and outstanding common shares and 1,428,571 warrants (50% of 2,857,143) represents 6.8% of the issued and outstanding warrants of the Company. As a result of the acquisition of securities described above, Mr. Warke owns in aggregate, 4,961,904 common shares of Catalyst, representing 16.94% of the current issued and outstanding shares of Catalyst and would own 9,790,475 common shares, representing 28.70% on a partially diluted basis, assuming the exercise of 4,828,571 warrants. Mr. Warke has signed a Letter of Undertaking to the TSX Venture Exchange stating that without receiving prior approval of Catalyst's shareholders, none of the aforementioned entities will exercise its warrants at any time when such exercise would increase Mr. Warke's beneficial ownership of common shares of Catalyst to 20% or more of the issued capital.
The Company has also been advised that pursuant to the private placement, Ian Telfer acquired 5,600,000 units at a price of $0.07 per unit which consists of 5,600,000 common shares, representing 19.1% of the issued and outstanding common shares and 5,600,000 warrants representing 26.7% of the issued and outstanding warrants of the Company. If the 5,600,000 warrants were exercised, Ian Telfer would own 32.1% of the issued and outstanding common shares on a partially diluted basis. Mr. Telfer has signed a Letter of Undertaking to the TSX Venture Exchange stating that without receiving prior approval of Catalyst's shareholders, he will not exercise his warrants at any time when such exercise would increase his ownership of common shares of Catalyst to 20% or more of the issued capital.
The Company further announces that pursuant to the private placement, Fiore Financial Corporation., a company owned and controlled by Frank Giustra , acquired 970,000 units at a price of $0.07 per unit which consists of 970,000 common shares representing 3.3% of the issued and outstanding common shares and 970,000 warrants representing 4.6% of the issued and outstanding warrants of the Company. In addition, a company 50% beneficially owned by Frank Giustra , acquired 2,857,143 units at a price of $0.07 per unit. 1,428,571 common shares (50% of 2,857,143) represents 4.9% of the issued and outstanding common shares and 1,428,571 warrants (50% of 2,857,143) represents 6.8% of the issued and outstanding warrants of the Company. As a result of the acquisition of securities described above, Mr. Giustra owns and/or controls 3,669,123 common shares of Catalyst representing 12.53% of the current issued and outstanding shares of Catalyst and would own and/or control 6,392,961 common shares, representing 19.97% on a partially diluted basis, assuming the exercise of 2,676,171 warrants and 47,667 options.
The Company also announces that pursuant to the private placement, Diamond Hill Investment Corporation acquired 2,314,285 units at a price of $0.07 per unit which consists of 2,314,285 common shares representing 7.9% of the issued and outstanding common shares and 2,314,285 warrants representing 11.0% of the issued and outstanding warrants of the Company. As a result of the acquisition of securities described above, Diamond Hill Investment Corporation owns 2,314,285 common shares of Catalyst representing 7.90% of the current issued and outstanding shares of Catalyst and would own 4,628,570 common shares, representing 14.65% on a partially diluted basis, assuming the exercise of 2,314,285 warrants.
The Company has been advised that Frank Giustra and his related entities, Richard Warke and his related entities, Ian Telfer , and Diamond Hill Investment Corporation 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.
"David Laing"
David Laing – 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.