Camino Corporation to Raise $3.0 Million to Advance its Los Chapitos Copper Discovery in Peru
Camino Corporation to Raise $3.0 Million to Advance its
Los Chapitos Copper Discovery in Peru
Vancouver, British Columbia--(Newsfile Corp. - June 19, 2020) - Camino Corporation (TSXV: COR) (OTCQB: CAMZF) (WKN:
A116E1) ("
Camino
" or the "
Company
") is pleased to announce that it is arranging a non-brokered private placement for gross
proceeds of $3,000,000 (the "
Financing
") which will be used to: (i) advance its exploration and development strategy at its Los
Chapitos copper discovery in Peru; (ii) to make a final property option payment of US$149,500 to realize a 100% ownership of
the Los Chapitos property that will initially be paid through a Promissory Note (defined below); (iii) repay the Promissory Note;
and (iv) for general working capital. The Financing is anticipated to be largely subscribed by institutional investors and will
include management participation.
"This investment will get us back to exploration drilling at our Los Chapitos copper discovery.
Camino is permitted with a
completed EIA to commence drilling in Peru.
We have submitted all information required by the General Mining Direction to
commence activities, and started filing our Covid-19 surveillance, prevention and control plan with authorities," said Camino
CEO, Jay Chmelauskas.
"We expect to restart activities at Los Chapitos to prepare the area for the drilling program in July,
mobilize a rig to the site in August, and to start drilling in September.
The initial drill program will be designed to expand on the
zone of copper mineralization first identified during the 2017 and 2018 discovery drill programs."
The Financing will consist of 30 million units (each, a "
Unit
") at a price of $0.10 per Unit. Each Unit will consist of one common
share in the capital of the Company and half a non-transferable common share purchase warrant. Each warrant will entitle the
holder to acquire an additional common share of the Company at a price of $0.15 per common share for a period of two years
from the date of issue.
All securities issued in connection with the Financing will be subject to a four-month hold period expiring
four months following the date of issue.
A finder's fee will be payable on a portion of the Financing.
Completion of the Financing
is subject to approval of the TSX Venture Exchange.
Management plans to provide a short-term demand promissory note to the Company in the amount of $200,000 to facilitate an
option payment due by July 1 (the "
Promissory Note
").
The Promissory Note will carry interest of 1% per month.
The
Promissory Note is considered a "related party transaction" under Multilateral Instrument 61-101 -
Protection of Minority
Security Holders in Special Transactions
("
MI 61-101
"). The entry into the Promissory Note is exempt from: (i) the formal
valuation requirements under Section 5.4 of MI 61-101 pursuant to Subsection 5.5(b) of MI 61-101; and (ii) the minority approval
requirements under Section 5.6 of MI 61-101 pursuant to Subsection 5.7(1)(f). The Company expects to repay the Promissory
Note with proceeds from the Financing. The Company's entry into the Promissory Note has been approved by the disinterested
directors of the Company.
About Camino Minerals Corporation
Camino is a discovery and development stage copper exploration company. The Company is focused on advancing its high-
grade, Los Chapitos copper project located in Peru, towards potential resource delineation and new discoveries. The Company
seeks to acquire a portfolio of advanced copper assets that have the potential to deliver copper into an electrifying copper
intensive global economy. For more information, please refer to Camino's website at
www.caminominerals.com
.
ON BEHALF OF THE BOARD
For further information, please contact:
/S/ "Jay Chmelauskas"
Camino Investor Relations
President and CEO
Tel: (604) 608-4513
Cautionary Note Regarding Forward Looking Statements:
Certain disclosures in this release constitute forward-looking
information. In making the forward-looking disclosures in this release, the Company has applied certain factors and
assumptions that are based on the Company's current beliefs as well as assumptions made by and information currently
available to the Company. Forward-looking information in the release includes the
terms of the Financing, anticipated
completion of the Financing, anticipated use of proceeds from the Financing, issuance of the Promissory Note, availability of
exemptions under MI 61-101 for the entry into the Promissory Note, prospectivity of the project for future exploration,
development and production, the start of drilling activities, the expansion of mineralization on the
Los Chapitos copper
project and that actual results of exploration activities are consistent with management's expectations. Although the
Company considers these assumptions to be reasonable based on information currently available to it, they may prove to be
incorrect, and the forward-looking information in this release is subject to numerous risks, uncertainties and other factors that
may cause future results to differ materially from those expressed or implied in such forward-looking information. Such risk
factors include, among others, that actual results of the Company's exploration activities will be different than those expected
by management, that the Company will be unable to obtain or will experience delays in obtaining any required approvals
and/or exemptions from securities laws, that the Financing may not be completed on the terms specified herein and the state
of equity and commodity markets. Readers are cautioned not to place undue reliance on forward-looking statements. The
Company does not intend, and expressly disclaims any intention or obligation to, update or revise any forward-looking
statements whether as a result of new information, future events or otherwise, except as required by law.
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.
To view the source version of this press release, please visit
https://www.newsfilecorp.com/release/58211