Vancouver, BC — Camino Minerals Corporation (COR: TSX-V) (“Camino” or the “Company”) is pleased to announce that it intends to raise up to $2,100,000 to fund a diamond drill program at the El Secreto Gold and Silver Project (“El Secreto” or the “Project”) located in Sinaloa State, Mexico.
The non-brokered private placement will consist of up to 30,000,000 units at a price of $0.07 per unit for aggregate proceeds of up to $2,100,000. Each unit will be comprised of one common share of the Company and one-half of one non-transferable share purchase warrant. Each whole warrant will entitle the holder to acquire one common share of the Company at an exercise price of $0.10 per common share for a period of 24 months after the closing date of the private placement. The warrants will be subject to an acceleration right in favour of the Company. Should the closing price of the common shares of Camino on the TSX Venture Exchange be $0.25 or higher for ten consecutive trading days, the Company will be entitled to accelerate the expiry of the warrants to the date that is 30 business days from the date of the issuance of a news release by the Company announcing the exercise of the acceleration right. The securities issued under the offering will be subject to a hold period of four months. Finders’ fees may be payable in connection with the issuance of the securities.
The private placement and finders’ fee are subject to applicable regulatory approvals, including the approval of the TSX Venture Exchange. Net proceeds of the private placement will be used to fund ongoing exploration, including a diamond drill program at the El Secreto property, and for general working capital.
Results from the first ever drill program at El Secreto (see Camino’s news release dated January 18, 2013) were very encouraging and suggest that high-grade mineralization may exist at depth. Gold and silver mineralization was encountered in 10 of the 11 holes and the mineralization was highly anomalous in arsenic and antimony. At Primero Mining Corporation’s San Dimas Mine, located 30 kilometres to the northeast, high arsenic and antimony values are found above the “Favourable Zone”, which hosts the deposits at San Dimas. Camino believes that the mineralization encountered in its recent drill program is situated high in a mineral system and that high-grade stockwork zones and ore shoots, similar to the mineralization at San Dimas, may exist at depth.
“El Secreto’s proximity to San Dimas, the structural setting similarities and the trace element signature gives us the confidence to move forward with a diamond drill program,” said Gordon Davis, Camino’s Chairman and CEO.
Follow up on extensive soil geochemical anomalies and mineral occurrences continues to yield positive results. Several new veins have been identified in the Carrizal Area and a 1.5 metre chip sample taken from a previously unknown adit at the El Secreto Zone returned 15.25 g/t gold, 41.8 g/t silver and 0.12% lead.
El Secreto is situated along the western edge of the Sierra Madre Occidental in a structural setting similar to Primero’s San Dimas Mine, located 30 kilometres to the northeast. San Dimas produced 102,000 gold equivalent ounces in 2011. Primero recently announced plans to increase mine throughput from the current 1,925 tonnes per day to 2,500 tonnes per day by the end of the first quarter of 2014. This expansion will allow for an average production target of 160,000 gold equivalent ounces per year over the next five years. Historical production from the San Dimas district is estimated at 11 million ounces of gold and 582 million ounces of silver.
About Camino Minerals Corporation
Camino is a discovery-oriented mineral exploration company formed in connection with Goldcorp’s C$300-million acquisition of Canplats Resources Corp. The Company is led by Canplats’ former management and is focused on precious and base metal projects located in Mexico. For more information on Camino’s projects, please refer to Camino’s website at www.caminominerals.com
The technical information contained in this news release has been reviewed and approved by Richard Dufresne, P.Geo., Camino’s V.P., Exploration, a “Qualified Person” as defined under NI 43-101.
For further information, contact:
Camino Minerals Corporation
R.E. Gordon Davis
Chairman and C.E.O.
Direct: (604) 629-8292
V.P., Corporate Development
Direct: (604) 629-8294
Toll-Free: (866) 338-0047
To receive Camino’s news releases, contact Blaine Monaghan, V.P., Corporate Development, at [email protected] or (866) 338-0047.
Neither the 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.
Cautionary Note Regarding Forward-Looking Statements
Statements contained in this news release that are not historical fact are forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995 and forward-looking information under the provisions of Canadian securities laws (collectively, “forward-looking statements”). Such forward-looking statements are subject to risks and uncertainties which could cause actual results to differ materially from estimated results. Such risks and uncertainties include, but are not limited to, the company’s ability to raise sufficient capital to fund exploration, changes in economic conditions or financial markets, changes in prices for the company’s mineral products or increases in input costs, litigation, legislative, environmental and other judicial, regulatory, political and competitive developments in Mexico, technological and operational difficulties or inability to obtain permits encountered in connection with exploration and development activities, labour relations matters, and changing foreign exchange rates, all of which are described more fully in Camino’s filings on SEDAR. The company undertakes no obligation to publicly update or otherwise revise any forward-looking statements, whether as a result of new information, future events or other factors, except as required by law. Readers are cautioned not to place undue reliance on forward-looking statements.
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