(All amounts in US dollars unless otherwise specified)
VANCOUVER, British Columbia – Capstone Mining Corp. (“Capstone” or the “Company”) (TSX: CS) is pleased to announce that it has submitted a preliminary preliminary prospectus (the “Platform Prospectus”) to the securities commissions at each one of the provinces and territories of Canada.
The shelf prospectus, upon receipt of the final base shelf prospectus, would allow Capstone to make offers of up to Cdn $ 500,000,000 of common shares, warrants, subscription receipts, units, debt securities, share purchase contracts or any other combination of them, periodically. at the same time for a period of 25 months. The specific terms of any future offering of securities (if applicable) will be set forth in a supplement to the shelf prospectus. Capstone has submitted this base platform prospectus for future financial flexibility and has no immediate intentions to bid. As reported in its quarterly financial statements ending March 31, 2021, Capstone had a cash position of $ 44.81 million and was debt freetwo. Subsequent to March 31, 2021, Capstone received $ 30 million as an initial deposit in the Wheaton Precious Metals Gold Stream Settlement.
This press release will not constitute an offer to sell, or a solicitation of an offer to buy, securities nor will there be any sale of securities in any jurisdiction where an offer, solicitation, or sale is illegal prior to registration or qualifications under the laws of securities of that jurisdiction.
A copy of the preliminary shelf insert, and copies of the final base shelf insert and any shelf insert supplements that may be submitted in the future, can be found on the Company’s SEDAR profile at www.sedar.com, or can be obtained from Wendy King, Senior Vice President, Risk, ESG, General Counsel and Corporate Secretary, Suite 2100 – 510 West Georgia Street, Vancouver, BC, V6B 0M3, [email protected]
Pinto Valley Technical Report Presentation
In addition, the company has presented on SEDAR a technical report entitled “NI 43-101 Technical Report on Pinto Valley Mine (“ PV ”), Arizona, USA.” (The “Technical Report”) that updates the life plan of the PV3 mine.
The Technical Report was prepared in accordance with the Canadian Securities Administrator’s National Instrument 43-101 Disclosure Standards for Mineral Projects (“NI 43-101”), and is available for review under the Company’s profile on SEDAR at www.sedar.com and on the Company’s website at capstonemining.com.
The Company expects to release an updated NI 43-101 Technical Report in 2022 presenting the results of various initiatives aimed at increasing the value of the Pinto Valley Mine, including a PV4 pre-feasibility study and Eriez Hydrofloat coarse particle flotation studies and Jetti catalyst. . technology.
1.Cash and cash equivalents and short-term investments for $ 44.8 million as of March 31, 2021
two.Debt Free refers to the zero balance of long-term debt as of March 31, 2021.
ABOUT CAPSTONE MINING CORP.
Capstone Mining Corp. is a Canadian base metal mining company with a focus on copper. We are committed to the responsible development of our assets and the environments in which we operate. Our two producing mines are the Pinto Valley copper mine located in Arizona, USA and the Cozamin copper-silver mine in the state of Zacatecas, Mexico. In addition, Capstone owns 100% of Santo Domingo, a large-scale and fully licensed copper-iron-gold project in Chile’s Region III, as well as a portfolio of exploration properties. Capstone’s strategy is to focus on optimizing operations and assets in politically stable and mining-friendly regions, centered on the Americas. Our headquarters are in Vancouver, Canada and we are listed on the Toronto Stock Exchange (TSX). More information is available at www.capstonemining.com.
This press release has been reviewed and approved by Brad Mercer, P. Geol., Capstone’s Senior Vice President and Chief Operating Officer, a qualified person and the person who oversees exploration and operating activities at the Pinto Valley Mine.
CAUTIONARY NOTE REGARDING FUTURE INFORMATION
This document contains “forward-looking information” within the meaning of Canadian securities law and “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 (collectively, “forward-looking statements”). These forward-looking statements are made as of the date of this document and the company does not intend, nor does it assume any obligation, to update these forward-looking statements, except as required by applicable securities law.
Forward-looking statements relate to future events or future performance and reflect our expectations or beliefs regarding future events and the impacts of the ongoing and evolving COVID-19 pandemic. Forward-looking statements include, but are not limited to, statements regarding the presentation of a final base prospectus, future securities offerings, and updated technical reports or technical information. Additionally, the potential effects of the COVID-19 pandemic on our business and operations are unknown at this time, including Capstone’s ability to manage the challenges and restrictions arising from COVID-19 in the communities in which Capstone and our operations operate. ability to continue safely. safely operate and return our business to normal operations. The impact of COVID-19 on Capstone depends on a number of factors beyond our control and knowledge, including the effectiveness of actions taken by public health and government authorities to combat the spread of the disease, global economic uncertainties, and outlook due to illness and evolving restrictions related to mining and travel in certain jurisdictions in which we operate. In certain cases, forward-looking statements can be identified by the use of words such as “anticipates”, “approximately”, “believes”, “budget”, “estimates”, expects “,” forecasts “,” guidance “, intentions”, “Plans”, “scheduled”, “objective” or variations of said words and phrases, or statements that certain actions, events or results “are achieved”, “could”, “may”, “could”, “occur”, “Should”, “will be taken” or “would be” or the negative of these terms or comparable terminology. In this document, certain forward-looking statements are identified by words including “anticipated”, “expected”, “guidance” and “plan” By their very nature, forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied in the forward-looking statements. ctive. . Such factors include, but are not limited to, risks related to inherent dangers associated with mining operations and the closure of mining projects, future prices of copper and other metals, compliance with financial covenants, surety bonds, our ability to raise capital. , Capstone’s ability to acquire properties for growth, counterparty risks associated with the sales of our metals, use of derivative financial instruments and associated counterparty risks, fluctuations in the foreign currency exchange rate, market access restrictions or fees, changes in general economic conditions, water availability, precision of mineral resources and mineral reserves estimates, operating in foreign jurisdictions at risk of changes in government regulation, compliance with government regulations, compliance with environmental laws and regulations, dependence of the approvals s, licenses and permits from government authorities and potential legal challenges for permit applications, contractual risks including, but not limited to, Due to our ability to meet proof of completion requirements under the Cozamin Silver Stream Agreement with Wheaton Precious Metals, our ability to meet certain closing conditions under the Santo Domingo Gold Stream Agreement with Wheaton Precious Metals, acting as Indemnifier for Minto Exploration Ltd.’s post-divestment surety obligations, climate change impact and changes in weather conditions at our Pinto Valley and Cozamin operations, changes in policy and regulatory requirements related to climate change and GHG emissions, land reclamation and mine closure obligations, risks related to widespread epidemics or pandemic outbreak, including the COVID-19 pandemic; the impact of COVID-19 on our workforce, suppliers and other essential resources and what effect those impacts, if any, would have on our business, including our ability to access goods and supplies, the ability to transport our products, and the impacts on employees productivity, risks related to Capstone’s operations, cash flow and results related to the unknown duration and impact of the COVID-19 pandemic, uncertainties and risks related to the potential development of the Santo Domingo Project, increased capital and operating costs, increased recovery cost, disputes over the title of our mineral properties, increased taxes in the jurisdictions in which the Company operates or is subject to taxes, changes in the tax regimes to which the that we are subject and any change in the law or interpretation of the law may be difficult to react in an effective way. efficient, maintaining a continuous social license to operate, dependence on key management personnel, possible conflicts of interest involving our directors and officers, corruption and bribery, limitations inherent to our insurance coverage, labor relations, increase in energy prices , competition in the mining industry including, but not limited to, competition for skilled labor, risks associated with joint venture partners, our ability to integrate new acquisitions and new technology into our operations, threats to cyber security, legal proceedings, and other mining industry risks, as well as factors detailed from time to time in the Company’s public files, including the Shelf Prospectus, which are presented and available for review under the SEDAR profiles at www.sedar.com. Although the Company has attempted to identify important factors that could cause our actual results, performance or achievements to differ materially from those described in our forward-looking statements, there may be other factors that cause our results, performance or achievements to differ from those anticipated. , estimated or planned. There can be no guarantee that our forward-looking statements will be accurate, as our actual results, performance or achievements could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on our forward-looking statements.
Jerrold Annett, Senior Vice President of Strategy and Capital Markets
Kettina Cordero, Director of Communications and Investor Relations