Tuesday, 12 June 2012

Celeste Copper closes $2.1 mln private placement with Liberty Metals and Mining

Celeste Copper Corp (CVE:C) announced late Monday the close of its $2.1 million private placement financing with Liberty Metals and Mining.
The Canada-based tin and copper mining explorer reported that Liberty Metals & Mining Holdings, a wholly-owned subsidiary of the Boston-based Liberty Mutual Insurance, acquired ownership of over 23.3 million units at a price of 9 cents each.
Each unit consisted of one common share and one half of a common purchase warrant, entitling the holder to purchase one common share at a price of 13 cents for a period of 30 months after the closing date.
Liberty Metals now owns roughly 45.55 million common shares and 22.7 million warrants, representing 47.97 per cent of Celeste’s outstanding common shares on a non-diluted basis, or 43.33 per cent on a fully diluted basis.
Subject to terms of the agreement, market conditions and other factors, Liberty Metals advised Celeste that it may purchase or dispose of additional securities of the company, or continue to hold its current position.
With the placement, Liberty Metals also added another nominee to Celeste’s board of directors, for a total of two nominees.
Celeste’s chairman Farhad Abasov said he welcomes Donald Tucker, an investment analyst of Liberty Metals, to Celeste’s board.
"I am very pleased that Donald has joined Celeste board. Donald brings significant financial expertise to Celeste,” said Abasov.
"We are also pleased that Liberty continues to strongly support our project which is entering an accelerated development stage.
"The company will use the proceeds from this financing to purchase an additional drill rig and expedite the current drill program. The funds will also be used to conduct all the required test work including metallurgical testing."
Celeste has an earn-in agreement to acquire a 60 percent equity interest in Cornish Minerals Limited, which controls mining rights in the historic Cornish mining region in Cornwall.
The company said that the proceeds from the Liberty Metals financing will also be used to fund an increase of Celeste's interest in Cornish Minerals from 19 per cent to 25 per cent, which is the maximum interest position available to Celeste at this time.
When Celeste acquires a 25 per cent stake, the company will be in a position to acquire either an additional 25 per cent in Cornish Minerals or an additional 35 per cent, upon completion by Celeste of its funding commitments by September 30, 2013.
Celeste is currently developing the South Crofty tin mine in Cornwall, England, a mine that has the potential to become the largest tin producer in the Western Hemisphere.
The company announced earlier on Monday shareholder approval for the $2.1 million investment by Liberty Metals and Mining.
Celeste also announced Monday morning the appointment of its CEO Alan Shoesmith to the company’s board of directors, as well as the resignation of Norman Brewster as director of the corporation.
Norman Brewster resigned as director in order to focus on his existing commitments.
Celeste also has copper, gold and silver properties located in Chile’s Cabeza de Vaca mineral district, where there is an exploration program taking place to advance these projects.

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