Coronet Metals Inc. (TSXV:CRF,OTCQX:CORMF) announced that it’s entered into a letter of intent (LOI) with Wealth Minerals Ltd. (TSXV:WML) under which it will negotiate an agreement to sell Wealth its Peruvian subsidiary.
Coronet Metals Inc. (TSXV:CRF,OTCQX:CORMF) announced that it’s entered into a letter of intent (LOI) with Wealth Minerals Ltd. (TSXV:WML) under which it will negotiate an agreement to sell Wealth its Peruvian subsidiary. The subsidiary holds a 100-percent interest in the Yanamina gold project.
As quoted in the press release:
Pursuant to the LOI, it is proposed that Wealth will acquire Yanamina through acquisition of Coronet’s Peruvian subsidiary, Coronet Metals Peru S.A.C. (‘Coronet Peru’), in consideration of Wealth issuing 1,000,000 shares to Coronet (750,000 shares at closing and 250,000 shares six months later). In addition, Wealth would assume responsibility for Coronet Peru’s outstanding debt in an amount of no more than USD 81,000, as well as Coronet’s obligations with respect to certain future share issuances and payments to Migme Limited (formerly ‘Latin Gold Limited’) (‘LGL’) and its subsidiary, Westmag Resources Limited (‘WRL’), the former owner of Yanamina (including a 1% gross revenue royalty payable to WRL on all gold produced in excess of 200,000 ounces) relating to Coronet’s purchase of Coronet Peru from LGL and WRL in 2011. Production from Yanamina is also subject to a 2% NSR in favour of Barrick Gold Corporation, which can be purchased outright at any time prior to the commencement of construction for USD 200,000 cash.
Closing of the proposed acquisition is subject to the completion and execution of the appropriate formal documentation with Coronet and LGL/WRL and the acceptance for filing of the transaction by the TSX Venture Exchange on behalf of both Wealth and Coronet. There can be no assurance that the transaction will proceed as proposed or at all.
Wealth has commissioned an up-to-date NI 43-101 technical report on Yanamina which it anticipates will be completed in time to be filed with the TSX Venture Exchange to support the planned acquisition.
Coronet Metals Inc. Management is focused on strengthening of Coronet’s balance sheet by reducing financial obligations in its current portfolio, allowing the Company to attract fresh investment capital which will allow the Company to advance its White Caps Gold Project near Manhattan, Nevada and to look at fresh opportunities.