Jun 12 2017
Camino Minerals Corporation is pleased to announce that it has completed a non-brokered private placement for gross proceeds of $5,035,000 which will be used to fund the Phase 2 drill program at its Los Chapitos project ("Chapitos"), located in southern Peru, and for general working capital.
The non-brokered private placement consisted of 5,300,000 units at a price of $0.95 per unit, each unit being comprised of one common share and one non-transferable share purchase warrant. The common shares, warrants and any shares issued on the exercise of warrants are subject to a four-month hold period expiring October 1, 2017. Each warrant will entitle the holder to acquire one additional common share of the Company at a price of $1.35 per common share until May 30, 2019. The warrants are subject to an acceleration right in favor of the Company: should the closing price of the common shares of the Company on the TSX Venture Exchange be $2.00 or higher for ten consecutive trading days, the Company will be entitled to accelerate the expiry of the warrants to the date that is 30 business days from the date of the issuance of a news release by the Company announcing the exercise of the acceleration right.
The Company paid $241,670 in cash and issued 254,389 warrants ("Finder's Warrants") to finders in respect of the placement. Each Finder's Warrant is subject to a hold period expiring on October 1, 2017 and will be exercisable into one common share of the Company at a price of $1.35 per share until May 30, 2019. The Finder's Warrants will be subject to the same acceleration clause as the private placement warrants.
The Phase 2 drill program commenced in mid-May, and will now total at least 3,000 meters of diamond drilling. The first drill was set up on the Adriana Zone and will initially complete a twin hole located next to CHR-002, which intersected 1.30% copper over 106 meters, including 2.12% copper over 38 meters. A second diamond drill has been mobilized to the property and is set up to test the Katty Zone, located one kilometer southeast of the Adriana Zone. Drill results will be released as they become available. A summary presentation can be found on the company website at www.caminominerals.com.
Kenneth C. McNaughton, M.A.Sc., P.Eng., the President and Chief Executive Officer of the Company, is a Qualified Person (QP) and is responsible for the Chapitos Project exploration program.