Coronet Metals Inc. Commences Commissioning of Liberty Gold Processing Facility and Announces Private Placement
Vancouver, British Columbia--(Newsfile Corp. - September 3, 2013) - Coronet Metals Inc. (“Coronet”) (TSXV: CRF) (OTCQX: CORMF) (FWB: 2CM) is pleased to announce it has begun commissioning its Liberty Gold Processing Facility ("Liberty" or “Liberty Facility”) in Amargosa Valley, Nevada. Coronet entered into a Lease with an Option to Purchase the permitted Liberty Facility in February 2013 and since has spent approximately $1.4 million upgrading the facility, infrastructure and utilities in order to custom process gold concentrates. The commissioning of the first phase of the plant, which will provide capacity of 20 tons of concentrate a day, is nearly complete. Current supply agreements are with independent parties. The Company plans to secure additional supply agreements and expand to the 50 ton per day permitted capacity in the future.
The gravity and magnetic separation circuits are working well. The ball mill, agitated leach, filtration and Merrill-Crowe circuits are nearing mechanical and electrical completion and commissioning/testing will begin in the next couple of weeks. All major mechanical and electrical components have been delivered to site.
In order to strengthen its working capital position during startup at Liberty, Coronet intends to raise up to $600,000 in a non-brokered private placement of common share units, of which $500,000 has already been committed. The common share units are priced at $0.05 per unit and comprise one common share of the Company and a warrant to purchase one additional common share at $0.10 at any time within two years (the “Private Placement”). The common shares and any shares issued pursuant to the warrants from the Private Placement will be subject to a 4 month hold period. The proceeds from the Private Placement will be used for working capital and corporate general and administrative purposes.
Mr. Theo van der Linde, President and CFO of Coronet states, “Commissioning of the Liberty Facility is an important milestone in our plan to build a stable cash flow operation that can support our future growth and objective in becoming a gold development and production company."
About Coronet Metals Inc.
Coronet Metals Inc. objective is to become a gold development and production company. The management team has experience in all aspects of the development and financing of resource projects in North and South America. Coronet owns the Yanamina Gold Project in Peru, the White Caps Gold Mining, Company Inc. Gold Project in Nevada and the Liberty Precious Metals Testing and Processing Facility in Nevada.
This news release contains certain forward-looking statements about operations and finance, and such statements involve risks and uncertainties. The results or events predicted may differ materially from actual results or events. Any forward-looking statement speaks only as of the date of this news release. Except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results, or any other occurrence.
Neither the 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.
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