Camino Minerals (COR-V) closes $2.17-million financing has been oversubscribed.
www.caminominerals.com
March 28, 2013 - News Release
Camino Minerals Corp. has completed a non-brokered private placement, and the financing has been oversubscribed The company raised gross proceeds of $2.17-million, which will be used to finance a diamond drill program at the El Secreto gold and silver project located in Sinaloa state, Mexico, and for general working capital. The non-brokered private placement consisted of 31 million units at a price of seven cents per unit for aggregate gross proceeds of $2.17-million. Each unit is composed of one common share of the company and one-half of one non-transferable share purchase warrant. Each whole warrant entitles the holder to acquire one common share of the company at an exercise price of 10 cents per common share for a period of 24 months after the closing date of the private placement. In the event that the closing price of the common shares of Camino on the TSX Venture Exchange is 25 cents or higher for 10 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 private placement are subject to a hold period of four months. In connection with the private placement, the company paid cash finders' fees of $24,780 and issued 111,000 warrants (having identical terms to the warrants issued under the private placement).
"Our ability to complete this financing in such a challenging market environment is a strong endorsement of El Secreto and our team," said Gordon Davis, Camino's chairman and chief executive officer. "Our property-wide exploration program continues to yield promising new targets, and we expect that diamond drilling will be under way in May."
The diamond drill program will focus on several known and a number of newly identified targets. At the El Secreto zone, drilling will test at depth a vein structure that contains two historical artisanal adits. One of the chip samples representative of the mineralization from these adits returned 15.25 grams per tonne gold, 41.8 grams per tonne silver and 0.12 per cent lead over 1.5 metre. Within the Carrizal area the drilling will test extensive gold- and silver-rich vein systems as well as porphyry targets. The type of gold-bearing veins originally recognized at the El Secreto zone has now been identified throughout the property. This clearly shows that the mineralized systems at El Secreto and Carrizal are part of a single very large vein field of more than 120 square kilometers (30,000 acres) in size.
El Secreto is situated along the western edge of the Sierra Madre Occidental in a structural setting similar to Primero's San Dimas mine, located 30 kilometres to the northeast. San Dimas produced 102,000 gold-equivalent ounces in 2011. Primero recently announced plans to increase mine throughput from the current 1,925 tonnes per day to 2,500 tonnes per day by the end of the first quarter of 2014. This expansion will allow for an average production target of 160,000 gold-equivalent ounces per year over the next five years. Historical production from the San Dimas district is estimated at 11 million ounces of gold and 582 million ounces of silver.
The technical information contained in this news release has been reviewed and approved by Richard Dufresne, PGeo, Camino's vice-president, exploration, a qualified person as defined under National Instrument 43-101.
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