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Tuesday, 19 March 2013
Celeste Mining secures up to $1 mln in short-term financing from largest shareholder
Celeste Mining Corp. (CVE:C) says it has secured means for short-term financing of up to $1 million from its largest shareholder - Liberty Metals & Mining.
Under the terms of the arrangement, Liberty will make available up to $1 million to the company to pay ongoing operating expenses.
Interest will be compounded monthly at a nominal annual rate of 10 percent per year. The balance under the loan matures on the earlier of 547 days from the date of the first advance, or within five business days following the receipt of a minimum of $2.0 million in net cash proceeds under any financing.
Celeste said late Friday afternoon that its board is working on a corporate and technical development plan that should position the company for a "successful exploration and development program". It plans to announce the details of this plan in the near future, it added.
Separately, the junior Canadian mineral explorer also announced the resignation of David McQuaig as CFO and director, as well as Myles McDougall as a director.
The company has also brought on Richard Kelertas, a prolific investment analyst in Canada, as a director of Celeste. He was most recently a VP and senior financial analyst at Dundee Capital Markets.
Earlier this year, the company saw its shares pop after it reported “strong" drill results from its South Crofty tin project in the UK, with three metres at 2.5% tin equivalent, including one metre at 6.83% tin equivalent.
The drill results are from the underground drill program being carried out by Cornish Minerals in the Dolcoath section of the project. Celeste has an earn-in agreement in place to acquire 100% of Cornish Minerals, which owns South Crofty in Cornwall, England.