CATALYST COPPER ISSUES CONVERTIBLE SECURITIES
Trading Symbol: TSX-V: CCY
VANCOUVER, B.C., August 20, 2013 – Catalyst Copper Corp. (“Catalyst” or “the Company”) is undertaking a non-brokered private placement of convertible notes (the "Notes") to raise gross proceeds of Cdn $150,000.
The Notes have a term of five years, and bear interest at a rate of 10% per annum, payable quarterly in arrears. The Notes are convertible at any time at the holder’s option into an aggregate of 3,000,000 units (“Units”), each Unit comprised of (a) one common share if conversion takes place in the first year following closing, and 0.5 of a common shares if conversion takes place thereafter, and (b) one share purchase warrant (a “Warrant”) each exercisable for one common share at a price of $0.05 for 12 months at a price of $0.10 for 12 months thereafter. If the Notes were fully converted into Units during the first year following their issuance, and assuming the Warrants comprising the Units were fully exercised during such period, a total of 6,000,000 common shares would be issued.
The Notes are being issued to John Greenslade, Catalyst’s CEO, and to a company controlled by Mr. Greenslade. The Company intends to use the net proceeds of the placement for general working capital.
The Offering is subject to receipt of the acceptance of the TSX Venture Exchange.
About La Verde
La 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.
La Verde property is subject to an option agreement with a Mexican subsidiary of Teck Resources Limited (Teck) whereby Catalyst’s 100% Mexican subsidiary, Minera Hill 29, has earned a 60% interest in La Verde by making US$10,000,000 in exploration expenditures (including 30,000 meters of drilling and 200 kilometers of IP) by December 31, 2012. Teck’s subsidiary has the option, by providing notice to Catalyst by March 3, 2013, to increase its interest to 60% by incurring aggregate expenditures equal to two times the amount spent by Catalyst. Should Teck fail to exercise its option to earn a 60% interest, Catalyst can acquire a 100% interest in La Verde by paying to Teck US$20 million. The property is subject to an underlying 0.5% NSR Royalty.
ON BEHALF OF THE BOARD OF DIRECTORS OF
CATALYST COPPER CORP.
"John W. Greenslade”
JOHN GREENSLADE, PRESIDENT & CEO
For further information please contact Corporate Communications Officer: Denby Greenslade (604) 638-5900.
Certain information set forth in this news release may contain forward-looking statements that involve substantial known and unknown risks and uncertainties. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond the control of the Company, including, but not limited to, risks associated with mineral exploration and mining activities, the impact of general economic conditions, industry conditions, dependence upon regulatory approvals, and the uncertainty of obtaining additional financing. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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