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Camino (TSXV:COR) raises $3M for exploration in Peru

Mining
TSX:COR
14 July 2020 09:01 (EDT)

Camino (COR) has completed its previously announced private placement for gross proceeds of C$3 million.

Under the terms of the placement, the Edmonton, Alberta-based company issued a total of 30 million units at a price of 10 cents each. These units are comprised of one common share and half of one common share purchase warrant.

Each whole warrant will entitle the holder to acquire an additional common share at a price of 15 cents, exercisable over a period of 24 months.

In connection with the placement, certain arm’s-length finders received a cash commission of $24,850 as consideration for their services.

The proceeds raised under the placement will be used primarily to fund a program of exploration and development work at Camino’s Los Chapitos copper-gold project in Peru. 

This initial program has been designed to expand a zone of copper mineralisation that was originally identified during previous drill programs in 2017 and 2018.

Earlier this month, Camino completed an option agreement with Minas Andinas SA to acquire a 100 per cent stake in the Los Chapitos property. 

Under the terms of the deal, which was signed on July 19, 2016, the company issued a total of roughly $680,000 in cash to Minas Andinas, along with 500,000 common shares.

Minas Andinas will retain a 1.5 per cent net smelter return royalty agreement, payable up to a maximum amount of $13.62 million, and will be adjusted on a yearly basis according to the US Consumer Price Index. Camino has the right of first offer to purchase this net smelter return royalty.

Most recently, the company received authorisation from Peru’s Ministry of Energy and Mines to begin the proposed drilling and exploration work. Camino’s Peru-based geological team will now undertake mapping and sampling work at the project, along with the refining of targets for a proposed drill program in September this year.

Camino (COR) is currently steady at 15 cents per share at 9:59am EDT.

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