TORONTO,
Jan. 8, 2014 /PRNewswire/ - Cerro
Grande Mining Corporation (the "Company" or "CEG")
(TSX: CEG) (OTCQX: CEGMF) announced the partial conversion of US
$850,000 of its unsecured convertible
debentures were issued on July 30,
2013 in the total amount of US $1,010,211.40 (the "Debentures").
Mario Hernandez,
("Hernandez") and David
Thomson, ("Thomson") both directors and officers of
the Company, through their respective companies Compañia Minera
Chanar Blanco S.A. ("Chanar Blanco"), and Compania Minera
Auromin Ltda ("Auromin") have each partially converted one
Debenture convertible into common shares of the Company (each, a
"Common Share"). Each of Hernandez and Thomson
acquired a Debenture in the aggregate principal amount of
US$505,105.70 which is convertible
into Common Shares at a rate of CDN$0.10 per Common Share (the "Conversion
Price"), on the basis of an exchange rate of US$1.00 to CDN$1.00. On this basis, each of
Chanar Blanco and Auromin partially converted the Debentures on the
basis of 1,000 Common Shares for each US$100 of outstanding principal up to an
aggregate of 8,500,000 Common Shares (4,250,000 Common Shares for
Chanar Blanco and 4,250,000 for Auromin). Under the terms of the
Debentures, the maximum amount convertible into Common Shares is
such that each of Hernandez and Thomson do not hold, directly or
indirectly, more than 19.99% of the issued and outstanding Common
Shares of the Company as at the date of conversion.
As a result of this conversion, Mr. Thomson now
holds 21,736,149 common shares of the Company or 19.7% and Mr.
Hernandez now holds 21,516,761 common shares of the Company or
19.5% of the 110,028,790 outstanding shares of the Company.
The Debentures were issued in payment of cash
advances by each of Hernandez and Thomson to the Company in the
aggregate amount of US$1,010,211.40.
The cash advances were used for working capital and to fund capital
expenditures on the Pimenton Mine. The Debentures were due to
mature on July 30, 2018. The
Debentures do not bear interest.
Cerro Grande Mining Corporation is a minerals
producing, exploration and development company with properties and
activities currently focused in Chile.
Forward-Looking Information
This press release may contain forward-looking
statements based on assumptions, uncertainties and management's
best estimates of future events. All statements that address future
activities, events or developments that the Company believes,
expects or anticipates will or may occur are forward-looking
information. Forward-looking information is based upon assumptions
by management that are subject to known and unknown risks and
uncertainties and other factors that may cause actual results to
differ materially from those expressed or implied by the
forward-looking information. Factors that may cause actual results
to vary materially include, but are not limited to changes in
general economic conditions or conditions in the financial markets.
Such forward-looking information is based on a number of
assumptions, including but not limited to, there being no
significant decline in existing general business and economic
conditions. Accordingly, readers should not place undue reliance on
forward-looking information. The Company undertakes no obligations
to update publicly or otherwise revise any forward-looking
information, except as may be required by law. For a more detailed
discussion of such risks and other factors that could cause actual
results to differ materially from those expressed or implied by
such forward-looking statements, refer to the Company's filings
with the Canadian securities regulators available
on www.sedar.com.
SOURCE Cerro Grande Mining Corporation