Coro spreads out payments on Minera San Jorge mine; stock slips 4.25%
Coro Mining, which is purchasing the Minera San Jorge copper-gold mine in Argentina from Franco Nevada Corp., said today it has changed the terms of the purchase agreement.
Trading in Coro (TSX:COP) was halted pending the news, then the stock slipped 4.25%.
Coro said it will pay Franco-Nevada $12.5 million over 10 years, with payments of $1.25 million per year. Coro will also pay Franco Nevada a 7.5% net smelter royalty on gold produced.
Franco-Nevada acquired the property from Lumina Royalty Corp in December.
Alan Stephens, President and CEO of Coro commented, "We are very pleased that Franco Nevada has shown its willingness to modify the terms of the purchase agreement. The previous agreement contemplated US$9.25 million in payments over the next 15 months; the new option payment schedule allows Coro to stage its investment in the project until it has greater certainty on the ability to permit the project in Mendoza province."
Coro's 52-week high is $1.61, but the stock plummeted to 26 cents last August when the Lower House of the Parliament of Mendoza voted against the Environmental Impact Study. The company says it is currently evaluating its alternatives including seeking legal redress and compensation. The $62-million market cap company says it has $12 million in the kitty.