Coronet Metals Commences Commissioning of Liberty Gold Processing Facility and Announces $600,000 Private Placement
Coronet Metals Inc. (TSXV:CRF,OTCQX:CORMF) commenced commissioning of its Liberty Gold Processing Facility in Nevada. The Company also intends to raise up to $600,000 in a non-brokered private placement of common share units, at a price of $0.05 per unit, of which $500,000 has already been committed.
As quoted in the press release:
Coronet entered into a Lease with an Option to Purchase the permitted Liberty Facility in February 2013 and since has spent approximately $1.4 million upgrading the facility, infrastructure and utilities in order to custom process gold concentrates. The commissioning of the first phase of the plant, which will provide capacity of 20 tons of concentrate a day, is nearly complete. Current supply agreements are with independent parties. The Company plans to secure additional supply agreements and expand to the 50 ton per day permitted capacity in the future.
In order to strengthen its working capital position during startup at Liberty, Coronet intends to raise up to $600,000 in a non-brokered private placement of common share units, of which $500,000 has already been committed. The common share units are priced at $0.05 per unit and comprise one common share of the Company and a warrant to purchase one additional common share at $0.10 at any time within two years (the “Private Placement”). The common shares and any shares issued pursuant to the warrants from the Private Placement will be subject to a 4 month hold period. The proceeds from the Private Placement will be used for working capital and corporate general and administrative purposes.
Coronet Metals Inc. President and CFO, Theo van der Linde, said:
Commissioning of the Liberty Facility is an important milestone in our plan to build a stable cash flow operation that can support our future growth and objective in becoming a gold development and production company.