Celeste Copper Corp. (CVE:C)
reported after markets closed Monday that it plans to undertake a
non-brokered private placement as it seeks to raise $2.52 million.
The
Calgary, Alberta-based company plans to sell 28 million units, each
made up of one share and one half purchase warrant, priced at nine
cents.
Each purchase warrant gives the holder a right to buy
another common share of Celeste for a price of 12.5 cents for a 30 month
period, after the transactions close.
Proceeds from the
placement will go toward boosting Celeste’s interest in Cornish Minerals
Limited to 25 percent from 19 percent.
Additionally, the company
can further increase its stake in Cornish Minerals to either 50 or 60
percent, provided it completes required funding commitments by September
30, 2013.
Liberty Metals & Mining Holdings, a unit of
Boston-based Liberty Mutual Insurance, plans to subscribe for up to 23.3
million units. Liberty, which is a control person of Celeste, would
hold about 48 percent of the company’s common shares and 85 percent of
the outstanding warrants.
Separately, both companies have
amended a previous agreement which will now allow Liberty to elect two
nominees to Celeste’s board. At the moment, Liberty can only designate
one nominee.
Last year, Celeste entered into an earn-in deal to
buy a 60 percent equity stake – with the option to up its interest to
100 percent – in Cornish Minerals Ltd which owns 150 square kilometres
of tin and copper mineral rights across the Cornish metallogenic
province in Cornwall, England.
Tin is a silvery malleable
metallic element that resists corrosion; it is used in many alloys and
to coat other metals to prevent corrosion.
Celeste Copper
is focused on developing the historical tin project in Cornwall. The
company also has copper, gold and silver properties located in Chile’s
Cabeza de Vaca mineral district, where it is undertaking an exploration
program.
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