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April 11, 2013 /PRNewswire/ -
Catalyst Copper Corp. (TSXV: CCY)
Company" or "
Catalyst") announces that, further to its Press Release dated
March 4, 2013, Catalyst and its wholly owned Mexican subsidiary,
Minera Hill 29 S.A. de C.V. ("Minera Hill"), have entered into a Purchase Option Agreement dated
April 9, 2013 with certain subsidiaries of Teck Resources Limited ("Teck") pursuant to which Catalyst has an option to indirectly acquire Teck's interest in the
La Verde property (the "Purchase Option"), subject to TSX-V approval.
Under the Purchase Option,
Minera Hill has 180 days from
April 9, 2013 to acquire Teck's interest in the
La Verde property by paying to Teck, or to its order, the sum of (a) an amount equal to all expenditures incurred by Teck in regards to the La Verde Project from
January 2, 2013 to the day immediately prior to the date Catalyst exercises the Purchase Option (the "Exercise Date"), plus either (1) making a cash payment of
US$20 million to Teck; or (2) making a payment of
US$25 million to Teck in a combination of cash and shares (of Catalyst), provided that at least 50% of this consideration is in cash, with the remainder of the consideration paid in shares of Catalyst; provided that Teck's ultimate shareholding in Catalyst does not exceed 19.9%,post issue. The Purchase Option Agreement provides that if Catalyst does not exercise the Purchase Option, the date Teck may elect to invoke its option to increase its interest in the property from 40% to 60% (the "T-1 Option") will be extended to the date that is 181 days from
April 9, 2013. If Catalyst exercises the Purchase Option, the T-1 Option expires on the closing of the purchase of Teck's interest.
About La VerdeLa Verde is located in an area with excellent infrastructure: Power, rail and water.
Lazaro Cardenas, Mexico's third largest port on the Pacific Ocean is 180 km from the site. Significant upside potential remains for the two known zones of porphyry style copper, gold and silver mineralization as drill programs have shown both deposits remain open to depth and along strike.