PP Closes, Larabie Resigns Coronado closes private placement for $6-million
Coronado Resources Ltd (2) (C:CRD)
Shares Issued 14,611,524
Last Close 8/14/2012
.70
Wednesday August 15 2012 - News Release
Mr. Daniel Brown reports
CORONADO ANNOUNCES CLOSING OF PRIVATE PLACEMENT, NEW CONTROL PERSON AND CORPORATE UPDATE
Coronado Resources Ltd. has closed the previously announced non-brokered private placement of 50 million common shares at a price of 12 cents per share for gross proceeds $6-million, subject to certain resale and transfer restrictions under applicable securities laws and policies of the TSX Venture Exchange. Certain subscribers are subject to additional resale and transfer restrictions upon which 10% of the subscribers' securities may be traded on or after August 14, 2013 and an additional 7.5% of the subscribers' securities may be traded on or after every subsequent six-month period until the remaining subscribers' securities may be traded on or after August 14, 2016.
The net proceeds of the non-brokered private placement will be used by the Company to maintain current operations at the Madison property, to identify and pursue new business opportunities and for general working capital purposes.
Coronado also wishes to announce that upon closing of the non-brokered private placement, as described above, TAG Oil Ltd. (TSX: TAO) became a Control Person of the Company. Pursuant to the terms of a subscription agreement dated August 14, 2012 between TAG and the Company, TAG acquired 25,975,000common shares in the capital of the Company through the non-brokered private placement for gross proceeds of $3,117,000. The common shares acquired by TAG pursuant to this transaction represent approximately 40.2% of the total issued and outstanding common shares of the Company on an undiluted basis as of the date of this news release.
Furthermore, the Company reports that Mr. Eugene Larabie has tendered his resignation as President, CEO and a director of Coronado. The Company would like to thank Mr. Larabie for his contributions. Ms. Laurie-Ann Larabie has also tendered her resignation as CFO and Corporate Secretary of the Company. Mr. Daniel Brown will serve as interim CEO and CFO of the Company, and Mr. Giuseppe (Pino) Perone LL.B., will join the Company's board of directors and serve as Corporate Secretary.
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