TORONTO, April 14, 2014 /CNW Telbec/ - Cerro Grande Mining Corporation
and the Board of Directors (the "Company" "CEG") (TSX: CEG) (OTCQX: CEGMF) announce the completion of a valuation
report which incorporates various technical and financial reports on
the Company's assets. The full report, dated March 19 2014, is for
internal use only. The report was prepared by Michael G. Fowler, M.Sc,
MBA, C.Eng, Senior Mining Analyst, who is a member of the firm LOM, an
exempt market dealer firm based in Toronto, Canada. Mr. Fowler, an
independent party to CEG, visited the Pimenton and Tordillo properties
as well as the Company's headquarters in February, 2014.
LOM made the following comments. The market value of a corporation is
defined as the price that an informed and independent purchaser would
pay to an informed, willing independent seller at a given time in an
unrestricted market condition, with neither party being under any
compulsion to transact. In the context of this report company value
pertains to the price that a purchaser would pay to acquire CEG.
The approach to valuation was based on summing the company's asset
values and deducting any liabilities. The report reviewed two
approaches to company valuation. The first approach, the one used in
this report, is based on a fundamental valuation of the company's
assets using discounted cash flow and option pricing techniques. This
method sums the values of company assets on an individual and isolated
basis. The second approach compiles independent market values of
comparable companies and then uses them to determine a value for CEG.
This second approach was not followed because LOM could not find good
market comparables.
The report does not analyse or address in-depth technical studies and
related details, which have been adequately reported on by other
consultants in various National Instrument 43-101 (Standards of
Disclosure for Mineral Deposits) and feasibility reports on the
company's assets.
LOM primarily used the option pricing methods to value the Company's
major assets and has valued the Company at US $14,880,000 or at Cdn
$0.15 cents per outstanding share.
Cerro Grande Mining Corporation is a minerals producing, exploration and
development company with properties and activities currently focused in
Chile.
Forward-Looking Information
This press release may contain forward-looking statements based on
assumptions, uncertainties and management's best estimates of future
events. All statements that address future activities, events or
developments that the Company believes, expects or anticipates will or
may occur are forward-looking information. Forward-looking information
is based upon assumptions by management that are subject to known and
unknown risks and uncertainties and other factors that may cause actual
results to differ materially from those expressed or implied by the
forward looking information. Factors that may cause actual results to
vary materially include, but are not limited to eligibility to list the
securities of the Company on the TSX Venture Exchange and changes in
general economic conditions or conditions in the financial markets.
Such forward-looking information is based on a number of assumptions,
including but not limited to, there being no significant decline in
existing general business and economic conditions. Accordingly, readers
should not place undue reliance on forward-looking information. The
Company undertakes no obligations to update publicly or otherwise
revise any forward-looking information, except as may be required by
law. For a more detailed discussion of such risks and other factors
that could cause actual results to differ materially from those
expressed or implied by such forward-looking statements, refer to the
Company's filings with the Canadian securities regulators available on www.sedar.com.
SOURCE Cerro Grande Mining Corporation
Registered Office:
ROYAL BANK PLAZA
SOUTH TOWER
200 BAY STREET, SUITE 3800
TORONTO, ONTARIO M5J 2Z4
CANADA
Santiago Office:
AVENIDA SANTA MARIA 2224
PROVIDENCIA, SANTIAGO, CHILE
Telephone: 56-2-2569 6200
Toronto Office:
1 KING STREET WEST, SUITE 4009
TORONTO, ONTARIO M5H 1A1
CANADA
For further information, contact:
Stephen W. Houghton, CEO
David R. S. Thomson, EVP
E-Mail: ceg@cegmining.com
Telephone: 56-2-2569 6200
Website: www.cegmining.com
Renmark Financial Communications Inc.
Barry Mire : bmire@renmarkfinancial.com
Tel: (416) 644-2020 or (514) 939-3989
www.renmarkfinancial.com
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