TORONTO,
April 14, 2014 /PRNewswire/ - Cerro
Grande Mining Corporation and the Board of Directors (the
"Company" "CEG") (TSX: CEG) (OTCQX: CEGMF) announce
the completion of a valuation report which incorporates various
technical and financial reports on the Company's assets. The full
report, dated March 19 2014, is for
internal use only. The report was prepared by Michael G. Fowler, M.Sc, MBA, C.Eng, Senior
Mining Analyst, who is a member of the firm LOM, an exempt market
dealer firm based in Toronto,
Canada. Mr. Fowler, an independent party to CEG, visited the
Pimenton and Tordillo properties as well as the Company's
headquarters in February, 2014.
LOM made the following comments. The market
value of a corporation is defined as the price that an informed and
independent purchaser would pay to an informed, willing independent
seller at a given time in an unrestricted market condition, with
neither party being under any compulsion to transact. In the
context of this report company value pertains to the price that a
purchaser would pay to acquire CEG.
The approach to valuation was based on summing
the company's asset values and deducting any liabilities. The
report reviewed two approaches to company valuation. The first
approach, the one used in this report, is based on a fundamental
valuation of the company's assets using discounted cash flow and
option pricing techniques. This method sums the values of company
assets on an individual and isolated basis. The second approach
compiles independent market values of comparable companies and then
uses them to determine a value for CEG. This second approach was
not followed because LOM could not find good market
comparables.
The report does not analyse or address in-depth
technical studies and related details, which have been adequately
reported on by other consultants in various National Instrument
43-101 (Standards of Disclosure for Mineral Deposits) and
feasibility reports on the company's assets.
LOM primarily used the option pricing methods to
value the Company's major assets and has valued the Company at US
$14,880,000 or at Cdn $0.15 cents per outstanding share.
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 eligibility to list the
securities of the Company on the TSX Venture Exchange and 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