- Camino Minera(COR) has entered into an agreement with Stellar Investment Holdings to purchase all Minera Maria Cecilia shares
- This means Camino will own and control the rights to Maria Cecilia Porphyry and Skarn Complex
- Pursuant to the agreement, Camino will issue over 23 million shares to Stellar at C$0.20 per share for a total of $4.6 million
- Stellar will invest an additional $500,000 in cash to Camino by subscribing for 2.2 million common shares of the company
- Shares of Camino were up 10 per cent to $0.22 as of 2:49 p.m. EDT
Camino Corp (COR) has entered into an agreement with Stellar Investment Holdings to purchase all shares of Minera Maria Cecilia.
Located in the British Virgin Islands, Minera Maria Cecilia will hand over the mineral rights and titles of the Maria Cecilia Porphyry and Skarn Complex, both located in Peru, to Camino Corp.
The company believes Maria Cecilia sits at the centre of a large porphyry complex.
Roughly US$28 million of exploration costs have been made at Maria Cecilia since 2012, which includes 32,120 metres of drilling done between 2013 and 2015.
These costs also include a National Instrument 43-01 copper resource.
Although no further drilling has been done to date, the prospect has been identified for more exploration work to be done by Camino.
Jay Chmelauskas, president & CEO of Camino, said in the release:
"The Maria Cecilia Porphyry Complex provides another large geological system to our portfolio of copper assets. "
In tandem with the purchase, Camino will issue Stellar over 23 million common shares at a price of C$0.20 for a total purchase price of $4.63 million.
Additionally, Stellar Investment Holdings, an affiliate of Denham Capital, will enter into a subscription agreement with Camino where it will invest an additional $500,000 into Camino with a subscription of 2.27 million common shares priced at $0.22 each.
The subscription will close simultaneously with the close of Camino's acquisition of Minera Maria Cecilia.
Once the acquisition has been completed and closed, Stellar will own roughly 20 per cent of Camino's issued and outstanding common shares.
The companies have also agreed to the terms of an investor rights agreement, which they will enter following the close of the transaction.
Shares of Camino Minerals were up 10 per cent to $0.22 as of 2:49 p.m. EDT.