Trading Symbol: CCY
VANCOUVER, July 21, 2014 /CNW/ - Catalyst Copper Corp.
("Catalyst" or the "Company") (TSX VENTURE:CCY) announces that
further to its news release dated June 23,
2014, it has closed its non-brokered private placement of
20,000,000 units at a price of $0.07
per unit for gross proceeds of $1,400,000. Each unit consists of one common
share and one full common share purchase warrant. Each whole common
share purchase warrant will be exercisable at $0.10 per common share until July 21, 2019. The securities issued in
connection with this private placement are subject to a four month
statutory hold period expiring on November
22, 2014. Proceeds will be used for payment of costs of the
study by JDS Energy and Mining Inc., existing payables including
$1,200,000 of secured loans, and for
general working capital.
The Company also announces that pursuant to the private
placement, Augusta Investments Inc., a company owned and controlled
by Richard Warke, acquired 3,400,000
units at a price of $0.07 per unit
which consists of 3,400,000 common shares, representing 11.6% of
the issued and outstanding common shares and 3,400,000 warrants
representing 16.2% of the issued and outstanding warrants of the
Company. In addition, a company 50% beneficially owned by
Richard Warke acquired 2,857,143
units at a price of $0.07 per unit.
1,428,571 common shares (50% of 2,857,143) represents 4.9% of the
issued and outstanding common shares and 1,428,571 warrants (50% of
2,857,143) represents 6.8% of the issued and outstanding warrants
of the Company. As a result of the acquisition of securities
described above, Mr. Warke owns in aggregate, 4,961,904 common
shares of Catalyst, representing 16.94% of the current issued and
outstanding shares of Catalyst and would own 9,790,475 common
shares, representing 28.70% on a partially diluted basis, assuming
the exercise of 4,828,571 warrants. Mr. Warke has signed a Letter
of Undertaking to the TSX Venture Exchange stating that without
receiving prior approval of Catalyst's shareholders, none of the
aforementioned entities will exercise its warrants at any time when
such exercise would increase Mr. Warke's beneficial ownership of
common shares of Catalyst to 20% or more of the issued capital.
The Company has also been advised that pursuant to the private
placement, Ian Telfer acquired
5,600,000 units at a price of $0.07
per unit which consists of 5,600,000 common shares, representing
19.1% of the issued and outstanding common shares and 5,600,000
warrants representing 26.7% of the issued and outstanding warrants
of the Company. If the 5,600,000 warrants were exercised,
Ian Telfer would own 32.1% of the
issued and outstanding common shares on a partially diluted basis.
Mr. Telfer has signed a Letter of Undertaking to the TSX Venture
Exchange stating that without receiving prior approval of
Catalyst's shareholders, he will not exercise his warrants at any
time when such exercise would increase his ownership of common
shares of Catalyst to 20% or more of the issued capital.
The Company further announces that pursuant to the private
placement, Fiore Financial Corporation., a company owned and
controlled by Frank Giustra,
acquired 970,000 units at a price of $0.07 per unit which consists of 970,000 common
shares representing 3.3% of the issued and outstanding common
shares and 970,000 warrants representing 4.6% of the issued and
outstanding warrants of the Company. In addition, a company 50%
beneficially owned by Frank Giustra,
acquired 2,857,143 units at a price of $0.07 per unit. 1,428,571 common shares (50% of
2,857,143) represents 4.9% of the issued and outstanding common
shares and 1,428,571 warrants (50% of 2,857,143) represents 6.8% of
the issued and outstanding warrants of the Company. As a result of
the acquisition of securities described above, Mr. Giustra owns
and/or controls 3,669,123 common shares of Catalyst representing
12.53% of the current issued and outstanding shares of Catalyst and
would own and/or control 6,392,961 common shares, representing
19.97% on a partially diluted basis, assuming the exercise of
2,676,171 warrants and 47,667 options.
The Company also announces that pursuant to the private
placement, Diamond Hill Investment Corporation acquired 2,314,285
units at a price of $0.07 per unit
which consists of 2,314,285 common shares representing 7.9% of the
issued and outstanding common shares and 2,314,285 warrants
representing 11.0% of the issued and outstanding warrants of the
Company. As a result of the acquisition of securities described
above, Diamond Hill Investment Corporation owns 2,314,285 common
shares of Catalyst representing 7.90% of the current issued and
outstanding shares of Catalyst and would own 4,628,570 common
shares, representing 14.65% on a partially diluted basis, assuming
the exercise of 2,314,285 warrants.
The Company has been advised that Frank
Giustra and his related entities, Richard Warke and his related entities,
Ian Telfer, and Diamond Hill
Investment Corporation have acquired these securities for
investment purposes and have no present intention to acquire
further securities of the Company, although they may in the future
acquire or dispose of securities of the Company, through the
market, privately or otherwise, as circumstances or market
conditions warrant.
About Catalyst Copper:
Catalyst Copper Corp. is a copper and base metal company with a
focus on copper mining projects in Mexico. Our current focus is the La Verde copper property, which is situated in
the Sierra Madre del Sur approximately 320 kilometres west of
Mexico City in Michoacán State
with excellent infrastructure: roads, rail, water and power.
Lazaro Cardenas, Mexico's third
largest port on the Pacific Ocean is 180 km from the site. A 43-101
Technical Report dated September 30,
2012 on the La Verde
property is filed on Sedar.
ON BEHALF OF THE BOARD OF DIRECTORS OF
CATALYST COPPER CORP.
"David Laing"
David Laing – CEO, President &
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 the 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.