VANCOUVER, May 3, 2017 /CNW/ - Camino Minerals Corporation ("Camino" or the "Company") (COR: TSX-V) is pleased to announce that it has increased the size of the financing announced on May 2, 2017, and that it now intends to raise up to $5,035,000 by way of a private placement, to fund the Phase 2 drill program at its Los Chapitos project ("Chapitos"), located in southern Peru.
The non-brokered private placement will consist of up to 5,300,000 units at a price of $0.95 per unit for aggregate proceeds of up to $5,035,000. Each unit will consist of one common share of the Company and one non-transferable share purchase warrant. Each warrant will entitle the holder to acquire one additional common share of the Company at a price of $1.35 per common share for a period of 24 months after the closing date of the private placement. The warrants will be 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 securities issued under the offering will be subject to a hold period of four months and finders' fees may be payable in connection with the issuance of the securities. The private placement is subject to applicable regulatory approvals, including the approval of the TSX Venture Exchange.
Net proceeds of the private placement will be used to fund ongoing exploration, including the Phase 2 diamond drill program at the Chapitos Project and for general working capital.
The Phase 1 Reverse Circulation ("RC") drill program totaled five holes and focused on the Adriana Zone, one of several zones located along a 6 kilometer long trend on the eastern side of the property. All five RC holes intersected varying amounts of oxide copper mineralization. Holes CHR-002 and CHR-005 also intersected sulphide mineralization averaging 1.30% copper over 106 meters, including 2.12% copper over 38 meters, and 0.86% copper over 44 meters, including 1.85% copper over 16 meters, respectively. The RC drill program was suspended due to significant hole deviations and drill cutting returns averaging 70%. A diamond drill has been contracted to complete the Phase 2 program and is scheduled to begin work in early May. This program is expected to include drilling a twin for hole CHR-002, and completing the initial test of the Katty Zone, which lies 1 kilometer east of the Adriana Zone. Assays will be release as they become available.
A summary presentation, including drill plans and sections, can be found on the company website at www.caminominerals.com.
Kenneth C. McNaughton, M.A.Sc., P.Eng., is the Qualified Person (QP) responsible for the Chapitos project.
About Camino Minerals Corporation
Camino is a discovery-oriented mineral exploration company. The Company is focused on the acquisition and development of high grade copper and precious metal projects. For more information, please refer to Camino's website at www.caminominerals.com
