TORONTO, Dec. 01, 2020 (GLOBE NEWSWIRE) -- This news release is in furtherance of Cerro Grande Mining Corporation’s (the “Company”) news release dated December 1, 2020 that announced that Minera Tamidak Limitada (“Tamidak”), Via Roja 8924, Vitacura, Santiago RM Chile 7660010 had acquired 44,055,102 treasury common shares (the “Issuance”) of the Company (a “Common Share”) as a result of receiving the first installment in the amount of $1,300,000,000 Chilean Pesos (approximately CDN$2,202,755.14) of the total purchase price payable ($3,900,000,000 Chilean Pesos)(approximately CDN$6,608,265) under the Asset Purchase and Contracts Assignment Agreement dated December 1, 2020 entered into between Tamidak and Minera Til Til SpA (“Til Til”), a wholly-owned subsidiary of the Company (the “APA”). Pursuant to the APA, Til Til acquired from Tamidak the mining concessions and other assets covering the Pimentón Copper Gold Mining Project as well as Tamidak’s rights and obligations under the Exploration and Option to Joint Venture Agreement entered into on or about April 27, 2020 between Tamidak and FQM Exploration (Chile) S.A., a Chilean subsidiary of First Quantum Minerals Ltd.
David, Ian and Matthew, who jointly own Tamidak, announce that, for purposes of applicable Canadian securities laws, they have now acquired ownership of an aggregate of 44,055,102 Common Shares. Each of David, Ian and Matthew has acquired beneficial ownership and control and direction of the Common Shares.
The name and address of the Company is: Cerro Grande Mining Corporation, Avenida Santa Maria 2224, Providencia, Santiago, Chile.
Immediately prior to the completion of the Issuance, David, Ian and Matthew Thomson had beneficial ownership of, or exercised control or direction over, 44,063,005, 47,803,595 and 47,803,595 Common Shares, respectively, representing 12.98%, 14.09% and 14.09%, respectively, of the 339,390,784 Common Shares then issued and outstanding, calculated on a non-diluted basis.
In addition, David, Ian and Matthew Thomson jointly had beneficial ownership of, or exercised control or direction over, an additional 81,807,694 Common Shares, representing 19.42%, in the aggregate, of the 339,390,784 Common Shares then issued and outstanding, assuming the conversion in full of the principal amount of a Debenture made as of February 20, 2020 (the “Debenture”).
Immediately after giving effect to the Issuance, David, Ian and Matthew Thomson, through Tamidak, beneficially own or exercise control or direction over an additional 44,055,102 Common Shares, representing approximately 11.5%, in the aggregate, of the 383,445,886 Common Shares currently issued and outstanding.
This represents an increase of approximately 6.7%, in the aggregate in the number of Common Shares over which David, Ian and Matthew have beneficial ownership, or control or direction, as compared to their early warning report of June 22, 2020, calculated on a non-diluted basis and approximately 4.6% calculated on a partially diluted basis, assuming exercise in full of the principal amount of the Debenture.
Accordingly, as a result of the Issuance, David, Ian and Matthew Thomson, directly and indirectly, beneficially own or exercise control or direction over 183,725,297 Common Shares, representing approximately 47.9%, in the aggregate, of the 383,445,886 Common Shares currently issued and outstanding, calculated on a non-diluted basis or approximately 57.1%, in the aggregate, of the 383,445,886 Common Shares currently issued and outstanding, calculated on a partially diluted basis, assuming exercise in full of the principal amount of the Debenture.
Tamidak acquired the Common Shares in connection with the transactions contemplated by the APA. Tamidak intends to hold the Common Shares for investment purposes and may, in the future, increase or decrease its ownership of securities of the Company, directly or indirectly, from time to time depending upon the business and prospects of the Company and future market conditions.
An early warning report (the “EWR”) is being filed on SEDAR and will be available for review at www.sedar.com under the Company’s profile. A copy of the EWR can be obtained from the contact below.
For more information, please contact:
James Mac Auliffe
Tel: +56 2 256 96228