Trading Symbol: CCY
VANCOUVER, April 16 /CNW/ - Catalyst Copper Corp. (the "Company" or "Catalyst") is pleased to announce the completion of the non-brokered private placement (the "Offering") 20,000,000 units at a price of $0.15 per unit for gross proceeds of Cdn $3,000,000, announced in its March 29, 2010 news release.
Each unit consists of one common share and one half of a common share purchase warrant. Each whole warrant will entitle its holder to purchase one additional common share of the Company at a price of $0.30 per common share until April 16, 2015. The common shares issued under the Offering and upon exercise of the warrants will be subject to a four-month hold period expiring August 17, 2010. A finders' fee in cash of up to 5% of the gross proceeds may be paid in accordance with TSX-Venture Exchange policy.
The Company will use the net proceeds of the Offering to pay the remaining US $2 million of the bridge financing to Endeavour Financial Corporation (See press release December 8, 2009) and general working capital including funding the 2010 exploration plans announced March 23, 2010.
Catalyst Copper is a Vancouver-based publicly traded mine development company (TSX-V: CCY). It holds an option to acquire an interest in the La Verde copper porphyry target Michoacan, Mexico (see press release dated December 8, 2009 for details). La Verde has an exposed porphyry system that should be amenable to open pit mining with potential Mo and Au credits, and comes with significant upside exploration potential. The project is located in an area with a preexisting infrastructure: 150 km to coast, water power and rail are nearby. The system is open in all directions. Management plans to explore this potential with the current 2010 exploration budget accounting for both drilling and geophysical programs consisting of 10,000 meters of core drilling and 50 km of IP survey. There exists an opportunity for significant additional discovery.
ON BEHALF OF THE BOARD OF DIRECTORS OF
CATALYST COPPER CORP.
"John W. Greenslade"
JOHN W. GREENSLADE, PRESIDENT
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 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: For further information: Corporate Communications Officer: Denby Greenslade, (604) 687-6690