Major Shareholders Extend Working Capital Facility to Continue Support for the Marimaca Project

VANCOUVER, British Columbia, March 19, 2020 (GLOBE NEWSWIRE) -- Coro Mining Corp. (“Coro” or the “Company”) (TSX: COP) today announced that it has entered into an unsecured working capital facility (“WCF”) with its major shareholders, Greenstone Resources II LP (“Greenstone”), and Tembo Capital Mining Fund II LP (“Tembo”) (together “the Lenders”), pursuant to which the Lenders have agreed to lend up to US$6.0 million to Coro to fund the Company through these challenging times.

The WCF has a 12-month term from the date of closing and bears interest at 12% per annum. Greenstone and Tembo will receive an aggregate 3% arrangement fee under the WCF, which will be payable at maturity. The proceeds of the WCF will allow Coro to continue its exploration and development plans, in a measured fashion, for its flagship Marimaca Copper Project (“Marimaca” or “the Project”), while removing the need to raise equity in this Coronavirus emergency market environment.  Drawdown by the Company under the WCF is subject to the approval of the Toronto Stock Exchange.

Michael Haworth, Executive Chairman of Coro Mining Corp commented:

“Greenstone and Tembo continue to believe Marimaca is one of the standout copper development stories globally and this further investment underlines that fact.

“Current market conditions are unprecedented. We will be exercising a high degree of capital discipline and limiting cash burn wherever possible, while recognizing the safety of our personnel and maintenance of our assets being our key objectives.

“We do believe that continuing to advance the development of Marimaca, in a measured fashion, while avoiding issuing equity, is in the interest of our shareholders. We will continue to monitor the broader market conditions and adjusting our strategy as appropriate. This WCF gives the Company the flexibility required within this operating environment.”

Marimaca Copper Project Overview

Coro recently released an updated Mineral Resource Estimate (“MRE”) for Marimaca of 420Kt of contained copper with an average grade of 0.60% copper within the Measured & Indicated Categories and 224Kt of contained copper with an average grade of 0.52% copper within the Inferred Category (refer release on 2 December 2019). This represents an increase of almost 100% from the MRE released in April 2018 and makes the Project one of the most significant copper oxide discoveries in Chile in the last decade.