VANCOUVER, Nov. 3 /CNW/ - Capstone Mining Corp. (CS: TSX) announces that it has acquired 4,500,000 units ("Units") of Nevada Copper Corp. ("Nevada Copper") pursuant to a private placement (the "Private Placement"). Each Unit consists of one common share and one half of one common share purchase warrant (each whole warrant, a "Warrant"). Each whole Warrant is exercisable into one common share for a period of two years from the closing date at an exercise price of $3.00 per common share. If at any time prior to the second anniversary of the closing date, the closing price of Nevada Copper's common shares is greater than $3.50 for at least 20 consecutive trading days, Nevada Copper can send a notice to Capstone stating that the Warrants will expire if not exercised within 30 days. The Units were acquired at a purchase price of CDN$2.50 per Unit representing an aggregate purchase price of CDN$11,250,000.
Prior to the Private Placement Capstone held 534,500 or 1.3% of the issued and outstanding common shares of Nevada Copper. Following the Private Placement, the common shares owned by Capstone represent 11.1% of the issued and outstanding common shares of Nevada Copper. Assuming the exercise of the Warrants, Capstone would own 7,284,500 common shares, or 15.4% of the issued and outstanding common shares of Nevada Copper.
Mr. Darren Pylot, Vice Chairman and CEO of Capstone commented, "This investment in Nevada Copper provides Capstone with exposure to a large, high grade copper project in Nevada, one of the more mining friendly jurisdictions in the US. We are happy to be a part of this project as it progresses towards its next stage of development."
The Units of Nevada Copper were acquired by Capstone for investment purposes. Depending upon market conditions and other factors that Capstone may deem material to its investment decisions, additional shares may be purchased in the open market or in private transactions. Depending on these same factors, the shares currently owned (or hereafter acquired) by Capstone may be sold in the open market or in private transactions.
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of this press release.
This document may contain "forward-looking statements" within the meaning of Canadian securities legislation and the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements are made as of the date of this document and Capstone Mining Corp. (hereinafter referred to as the "Company") does not intend, and does not assume any obligation, to update these forward-looking statements.
Forward-looking statements relate to future events or future performance and reflect management of the Company's expectations or beliefs regarding future events and include, but are not limited to, statements with respect to the estimation of mineral reserves and resources, the realization of mineral reserve estimates, the timing and amount of estimated future production, costs of production, capital expenditures, success of mining operations, environmental risks, unanticipated reclamation expenses, title disputes or claims and limitations on insurance coverage. In certain cases, forward-looking statements can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved" or the negative of these terms or comparable terminology. By their very nature forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others, risks related to actual results of current exploration activities; changes in project parameters as plans continue to be refined; future prices of resources; possible variations in ore reserves, grade or recovery rates; accidents, labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing or in the completion of development or construction activities; as well as those factors detailed from time to time in the Company's interim and annual financial statements and management's discussion and analysis of those statements, all of which are filed and available for review on SEDAR at www.sedar.com. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements.
Accordingly, readers should not place undue reliance on forward looking statements.
SOURCE Capstone Mining Corp.
For further information: For further information: concerning the foregoing or a copy of the Early Warning Report referred to in this release, please contact: Darren Pylot, Vice Chairman & CEO or Stephen Quin, President & COO or Jason Howe, VP, Investor Relations, at (604) 684-8894 or toll free at (866) 684-8894; firstname.lastname@example.org