Trading Symbol: TSX-V: CCY
Vancouver, B.C., March 5, 2013–Catalyst Copper Corp. (TSXV: CCY)(the "Company" or "Catalyst") is pleased to announce today that it has closed the first tranche, of 4,066,667 units for proceeds of $244,000, of its previously announced non-brokered private placement of 10,000,000 units (the "Offering") of the Company at a price of $0.06 per unit.
The Company elected not to complete the entire 10,000,000 units announced February 20, 2013 due to the expected decision from Teck Resources Limited in regards to Catalyst’s La Verde Project, Mexico on or before March 4, 2013. It elected to cut-off acceptance of subscription agreements as of February 27, 2013. Once a decision is received from Teck Resources Limited, the Company will look at whether to proceed with the balance of the offering at the higher of the $0.06/unit or a post-announcement price.
The Corporation intends to use the proceeds from the sale of the Units to meet ongoing concession fees and site maintenance at the La Verde project and general working capital.
Each unit consists of one common share and one half of a common share purchase warrant. Each whole warrant will entitle its holder to purchase one additional common share of the Company until five (5) years from the closing date, at a price of $0.12 per common share. The securities issued under the private placements will be subject to a four-month hold period ending July 4, 2013.
Insiders of the Company purchased 3,166,667 units of the 4,066,667 units (~ 78%) of in the first tranche.