LONGUEUIL, QUEBEC--(Marketwire - Aug. 10, 2012) - Cerro Resources NL (ASX:CJO)(TSX VENTURE:CJO) is pleased to advise that it has raised A$2,319,500 through the share purchase plan (Plan), as initially announced on July 9, 2012.
Under the Plan, each eligible shareholder (being those holding fully paid ordinary shares in the capital of the Company as at the Record Date and whose address in the Company's register was in Australia or New Zealand), were invited to subscribe for up to A$15,000 worth of fully paid ordinary shares in the Company at a subscription price of A$0.07 per share.
Funds raised under the Plan will be used to:
- secure the outstanding land required for development of the Cerro del Gallo project and attend to permitting and design requirements for the project's advancement;
- satisfy the Company's general working capital expenses; and
- fund ongoing exploration activities by the Company.
The Company's Managing Director Tony McDonald said, "It is pleasing that shareholders have responded favourably to this opportunity to participate where market conditions are somewhat uncertain. They recognise the underlying value of the Company's assets and hopefully a re-rating is not far off".
Canadian Regulatory Statement
All shares issued under the Plan will be subject to a regulatory four month hold period in Canada under Canadian securities laws and cannot be traded on the TSX Venture Exchange or be resold in Canada during this period, unless an exemption is available from the applicable prospectus requirements in Canada. Shares issued in Australia will be tradeable on the ASX but will not be convertible to shares tradeable in Canada during this hold period. The Company will implement appropriate controls with its share registries to ensure Canadian regulatory requirements are met.
The new shares are expected to be issued on August 13, 2012 following receipt of final approvals from the TSX Venture Exchange.
About Cerro Resources
Cerro Resources is a precious and base metals exploration and development company. The Company is currently focused on Mexico where it is developing the Cerro del Gallo gold/silver project in the central state of Guanajuato, Mexico, actively exploring the Namiquipa silver project in northern Mexico, and commencing exploration on the Espiritu Santo gold/silver project in Jalisco. It also maintains an active focus on the Mt Isa, Queensland, region where it holds 100% of the Mt Philp haematite project as well as a continued interest in the Kalman molybdenum, rhenium, and copper project.
Additional information about the Company and its projects is available on the Company's website at www.cerroresources.com and on SEDAR.
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.