OTTAWA, Jan. 11, 2018 (GLOBE NEWSWIRE) -- Cornerstone Capital Resources Inc. ("Cornerstone") (TSXV:CGP) (Frankfurt:GWN) (Berlin:GWN) (OTC:CTNXF) announces that the Board of Directors of Cornerstone has approved a non-brokered private placement of up to 23.5 million common shares at an issue price of $0.22 per common share for total gross proceeds of $5.17 million.
Pursuant to the previously announced plan of arrangement, Cornerstone will spin off all of its assets except for its interests in the Cascabel concession in Ecuador, shares of SolGold plc and the joint venture with Ecuadorian state mining company ENAMI EP into a new company called Cornerstone Exploration Inc. ("Cornerstone Exploration"). Cornerstone Exploration will own the drill ready Caña Brava, Bella Maria, Vetas Grandes and Bramaderos properties in Ecuador, the Tioloma property, the pending applications for new properties in Ecuador made by Cornerstone subsidiary La Plata Minerales S.A., and the Miocene property in Chile, in addition to Cornerstone's generative exploration databases for Ecuador and Chile. In addition, Cornerstone will be re-named Cascabel Gold & Copper Inc. ("Cascabel Gold & Copper").
$3.75 million of the proceeds of the private placement will be used to fund Cornerstone Exploration, with the balance of the proceeds being used to fund Cascabel Gold & Copper. Cornerstone Exploration and Cascabel Gold & Copper will each use their respective share of the proceeds for the purposes as disclosed in the management information circular of Cornerstone dated November 6, 2017, which is filed under Cornerstone's profile on SEDAR at www.sedar.com, and for general corporate purposes.
The private placement will be subject to all necessary regulatory approvals, including approval of the TSX Venture Exchange. However, the private placement is not conditional on the closing of the plan of arrangement. The private placement is expected to close in February 2018.
The shares issued pursuant to the private placement will be subject to a four-month hold period. Finder's fees may be payable by Cornerstone in connection with the private placement.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States of America. The securities have not been and will not be registered under the United States Securities Act of 1933 (the “1933 Act”) or any state securities laws and may not be offered or sold within the United States or to U.S. Persons (as defined in the 1933 Act) unless registered under the 1933 Act and applicable state securities laws, or an exemption from such registration is available.
About Cornerstone:
Cornerstone Capital Resources Inc. is a mineral exploration company with a diversified portfolio of projects in Ecuador and Chile, and a proven ability to identify, acquire and advance properties of merit.
