Catalyst to be granted option to purchase La Verde project
Trading Symbol: CCY
VANCOUVER, March 4, 2013 /PRNewswire/ – Catalyst Copper Corp. (TSXV: CCY) (the “Company” or “Catalyst“) announces that it has received a letter dated March 1, 2013 (the
“Offer Letter”), from an affiliate of Teck Resources Limited (“Teck”)
offering to grant Catalyst’s wholly owned Mexican subsidiary, Minera
Hill 29 S.A de C.V. (“Minera Hill”), the option to acquire Teck’s
interest in the La Verde property (the “Purchase Option”). The Purchase
Option is subject to Teck, Catalyst and Minera Hill negotiating and
signing a binding agreement (the “Definitive Agreement“) by April 2, 2013, and is subject to TSX-V approval.
Under the proposed Purchase Option, Minera Hill would have 180 days from
signing the Definitive Agreement to acquire Teck’s interest in the La
Verde property by either (1) making a cash payment of $20 million to
Teck; or (2) making a payment of $25 million to Teck in a combination
of cash and shares (of Catalyst), provided that at least 50% of this
consideration is in cash, with the remainder of the consideration paid
in shares of Catalyst; provided that Teck’s ultimate shareholding in
Catalyst does not exceed 19.9%,post issue. In consideration, the
Company will agree that if it does not exercise the Purchase Option,
the date Teck may elect to invoke its option to increase its interest
in the property from 40% to 60% will be extended to the date that is
181 days from the signing of the Definitive Agreement.
If the parties are unable to reach a Definitive Agreement with respect
to the Purchase Option by April 2, 2013, the Offer Letter serves as
notice to Catalyst that Teck Invokes its option to increase its
interest in the property to 60% under the terms of the December 2009
Option Agreement among the parties by incurring $20 million in
Expenditures on the La Verde property over a three year period of time.
About La Verde
La Verde is located in an area with excellent infrastructure: Power,
rail and water. Lazaro Cardenas, Mexico’s third largest port on the
Pacific Ocean is 180 km from the site. Significant upside potential
remains for the two known zones of porphyry style copper, gold and
silver mineralization as drill programs have shown both deposits remain
open to depth and along strike.
ON BEHALF OF THE BOARD OF DIRECTORS OF
CATALYST COPPER CORP.
“John W. Greenslade”
John W. Greenslade – President, CEO (Director)
Certain information set forth in this news release may contain
forward-looking statements that involve substantial known and unknown
risks and uncertainties. These forward-looking statements are subject
to numerous risks and uncertainties, certain of which are beyond the
control of the Company, including, but not limited to, risks associated
with mineral exploration and mining activities, the impact of general
economic conditions, industry conditions, dependence upon regulatory
approvals, and the uncertainty of obtaining additional financing.
Readers are cautioned that the assumptions used in the preparation of
such information, although considered reasonable at the time of
preparation, may prove to be imprecise and, as such, undue reliance
should not be placed on forward-looking statements. 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.
SOURCE Catalyst Copper Corp.