Coro Mining Corp. (TSX: COP) is pleased to announce that its subsidiary SCM Berta S.A. has sold the Berta mining operation and concessions to Santiago Metals Proyecto 4 Limitada, a private Chilean company for total consideration of US$8.5 million.

Commenting on the announcement, Luis Tondo, President and CEO of Coro said: “In October last year we announced that we were placing the Berta Mine and Nora Processing Plant on care and maintenance while looking for longer-term solutions. I am pleased to announce today that we have completed the sale of the Berta Mine to Santiago Metals for US$8.5 million. With the sale of the Berta Mine, Coro will benefit from being streamlined, allowing a greater focus of time and energy on our Marimaca Project where the exploration program is approaching peak activity and the results thus far have exceeded our expectations.”

Berta Transaction

The total purchase price paid by Santiago Metals for the Berta Mine is US$8.5 million, split between US$7.65 million on signing and the balance of US$0.85 million held in escrow for nine months. In addition to the Berta Mine, some equipment, permits and all the remaining mining concessions adjacent to the Berta Mine were included in the sale. The sales proceeds will primarily be used by SCM Berta to repay the US$6 million drawn and owed to Greenstone Resources from the US$10 million October 2018 facility. The remaining funds will be applied towards the interim care and maintenance costs and assessing a potential long-term development plan for the Nora processing facilities. Further funds may be drawn on the facility in the future if necessary.

Greenstone Conversion

SCM Berta continues to be owned 100% by Coro because Greenstone Resources has not yet converted the $12m convertible loan facility announced in April 2018. It is important to be reminded that this loan has no recourse to Coro’s Marimaca Project. Greenstone now expects to convert the Convertible Loan by the end of the first quarter 2019 when the final legal conditions to the conversion have been satisfied. Following the conversion, Coro’s ownership in SCM Berta will fall to 25% with Greenstone owning the majority 75%.