Capstone Mining Corp. Announces the filing of a preliminary base shelf prospectus for future financial flexibility and an updated technical report for Pinto Valley
Vancouver, British Columbia – (COMMERCIAL THREAD) – Capstone Mining Corp. (“Capstone” or the “Company”) (TSX: CS) is pleased to announce that it has filed a preliminary base shelf prospectus (the “shelf prospectus”) with the securities commissions of each 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, securities. debt, stock purchase contracts, or any combination thereof, from time to time over a 25 month period. The precise terms of any future offering of securities (if any) will be set out in a shelf prospectus supplement. Capstone has filed this base shelf prospectus for future financial flexibility and has no immediate intention of making an offer. As reported in its quarterly financial statements ended March 31, 2021, Capstone had a cash position of $ 44.81 million and was debt free2. After March 31, 2021, Capstone received $ 30 million as an initial deposit under the Wheaton Precious Metals Gold Stream deal.
This press release does not constitute an offer to sell or the solicitation of an offer to buy securities and there will be no sale of securities in any jurisdiction in which an offer, solicitation or sale would be illegal prior to the registration or qualifications under the securities laws of such jurisdiction.
A copy of the preliminary shelf prospectus, together with copies of the final base shelf prospectus and any shelf prospectus supplement that may be filed in the future, can be found under the Company’s SEDAR profile at www.sedar.com, or can be obtained upon request 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]
Filing of the Pinto Valley technical report
In addition, the Company filed on SEDAR a technical report entitled “NI 43-101 Technical Report on the Pinto Valley (“PV”) Mine, Arizona, USA “(the” Technical Report “) updating the life plan for the PV3 mine.
The technical report has been prepared in accordance with the Canadian Securities Authority’s National Instrument 43-101 on Disclosure Standards for Mining Projects (“Regulation 43-101”) and can be viewed under the profile of the Company on SEDAR at www.sedar.com and on the Company’s website at capstonemining.com.
The Company plans to release an update to NI 43-101 Technical Report in 2022 presenting the results of several initiatives to increase the value of the Pinto Valley mine, including a PV4 pre-feasibility study and particle flotation studies. coarse Eriez Hydrofloat and Jetti catalyst. Technology.
1.Cash and cash equivalents and short-term investments of $ 44.8 million as at March 31, 2021
2.Debt Free refers to a zero long-term debt balance as at March 31, 2021
ABOUT CAPSTONE MINING CORP.
Capstone Mining Corp. is a Canadian base metals mining company specializing in 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 in Arizona, United States, and the Cozamin copper-silver mine in Zacatecas state, Mexico. In addition, Capstone owns 100% of Santo Domingo, a fully licensed large-scale copper-iron-gold project in Region III, Chile, as well as a portfolio of exploration properties. Capstone’s strategy is to focus on optimizing operations and assets in politically stable, mining-friendly regions, centered in the Americas. Our head office is 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., Senior Vice President and Chief Operating Officer of Capstone, a Qualified Person and the person who oversees the mining and exploration activities at the Pinto Valley mine.
CAUTION REGARDING FORWARD-LOOKING INFORMATION
This document contains “forward-looking information” within the meaning of Canadian securities laws and “forward-looking statements” within the meaning of the US 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, and assumes no obligation, to update these forward-looking statements, except as required by applicable securities legislation.
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, without limitation, statements regarding the filing of a final base shelf prospectus, future offerings of securities 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 operates. and our ability to continue to operate and safely 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 measures taken by public health and government authorities to combat the spread of the disease. , global economic uncertainties and outlook due to disease and changing mining and travel restrictions in some of the jurisdictions in which we operate. In some cases, forward-looking statements can be identified by the use of words such as “plans”, “approximately”, “believes”, “budget”, “estimates”, expects “,” forecasts “,” guidance. “Means” “,” plans “,” planned “,” target “, or variations of these words and phrases, or statements that certain actions, events or results” will be achieved “,” could ” , “could”, “could”, “occur”, “should”, “will be taken” or “would” or the negative of these terms or comparable terminology. In this document, certain forward-looking statements are identified by words including “anticipated,” “expected,” “direction” and “plan.” By their very nature, forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our results, actual performance or achievements are significantly different from the results, performan such or future achievements expressed or implied by forward-looking statements. . These factors include, among others, the risks associated with the inherent dangers associated with mining operations and the closure of mining projects, future prices of copper and other metals, compliance with financial covenants, bonding, our ability to mobilize capital, Capstone’s ability to acquire properties for growth, counterparty risks associated with sales of our metals, use of derivative financial instruments and associated counterparty risks, exchange rate fluctuations, market access restrictions or tariffs , changes in general economic conditions, water availability, accuracy of mineral resources and mineral reserves estimates, operating in foreign jurisdictions with risk of changes in government regulations, compliance with government regulations, compliance with environmental laws and regulations, dependence on approvals, licenses and perm is government authorities and potential legal challenges for permit applications, contractual risks including but not limited to our ability to meet the requirements of the completion test 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 indemnity for Minto Exploration Ltd. s post-sale bond obligations, impact of climate change and changes in weather conditions at our Pinto Valley and Cozamin operations, changes in regulatory requirements and policies related to climate change and GHG emissions, remediation obligations land and mine closures, risks associated with generalized epidemics or a pandemic epidemic, including the COVID-19 pandemic; the impact of COVID-19 on our workforce, suppliers and other critical resources and what effect these impacts, if they occur, would have on our business, including our ability to access goods and services supplies, the ability to transport our products and the impacts on employees productivity, operational risks, cash flow and Capstone results related to the unknown duration and impact of the COVID-19 pandemic, uncertainties and risks associated with the potential development of the Santo Domingo project, increased operating and capital costs, increased reclamation costs, title challenges to our mining properties, increased taxes in jurisdictions where the Company operates or is subject to tax, changes in tax regimes to which we are subject and any change in law or the interpretation of law may be difficult to respond to r in an effective manner, maintaining a continuing social license to operate, reliance on key management personnel, potential conflicts of interest involving our directors and officers, corruption and bribes wine, limitations inherent in our insurance coverage, labor relations, increased 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 technologies into our operations, cybersecurity threats, lawsuits and other risks of the mining industry as well as the factors detailed from time to time in the public documents of the Company, including the shelf prospectus, which are filed and available for review under the profile on SEDAR at www.sedar.com. Although the Company has attempted to identify material 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 may cause our actual results, performance or achievements to differ materially from those described in our forward-looking statements, there may be other factors that may cause our results, performance or achievements are not as expected. , estimated or planned. There can be no assurance that our forward-looking statements will prove to be accurate, as our actual results, performance or achievements could differ materially from those anticipated in such statements. Therefore, readers should not place undue reliance on our forward-looking statements.