Vancouver-based miner Coro has entered in a financing agreement with resource merchant bank Dundee Global to fund the purchase of the Cerro Negro copper mine in Chile.
Under the agreement, Dundee Global will undertake two private placements totaling an aggregate of $15 million, equivalent to 25.04% of the outstanding shares of Coro, and provide a $25 million loan at a 12% interest rate, Coro says. The facility is non-revolving with an initial term of 12 months from the closing date, which is targeted for September, Coro says.
In operation
since 1944, the
Cerro Negro mine is located 37km south east of Cabildo in the province of Petorca, and produces 6,000 tpy copper cathode. The Canadian company also operates the Flores mine in Chile and San Jorge in Argentina.
Dundee Global is a subsidiary of Cayman Island’s based The
Dundee Bank.
