Trading Symbol: CCY
VANCOUVER,
March 4, 2013 /CNW/ - Catalyst Copper
Corp. (TSXV: CCY) (the "Company" or "Catalyst")
announces that it has received a letter dated March 1, 2013 (the "Offer Letter"), from an
affiliate of Teck Resources Limited ("Teck") offering to grant
Catalyst's wholly owned Mexican subsidiary, Minera Hill 29 S.A de C.V. ("Minera Hill"), the
option to acquire Teck's interest in the La Verde property (the "Purchase Option"). The
Purchase Option is subject to Teck, Catalyst and Minera Hill negotiating and signing a binding
agreement (the "Definitive Agreement") by April 2, 2013, and is subject to TSX-V
approval.
Under the proposed Purchase Option, Minera Hill would have 180 days from signing the
Definitive Agreement to acquire Teck's interest in the La Verde property by either (1) making a cash
payment of $20 million to Teck; or
(2) making a payment of $25 million
to Teck in a combination of cash and shares (of Catalyst), provided
that at least 50% of this consideration is in cash, with the
remainder of the consideration paid in shares of Catalyst; provided
that Teck's ultimate shareholding in Catalyst does not exceed
19.9%,post issue. In consideration, the Company will agree
that if it does not exercise the Purchase Option, the date Teck may
elect to invoke its option to increase its interest in the property
from 40% to 60% will be extended to the date that is 181 days from
the signing of the Definitive Agreement.
If the parties are unable to reach a Definitive
Agreement with respect to the Purchase Option by April 2, 2013, the Offer Letter serves as notice
to Catalyst that Teck Invokes its option to increase its interest
in the property to 60% under the terms of the December 2009 Option Agreement among the parties
by incurring $20 million in
Expenditures on the La Verde
property over a three year period of time.
About La
Verde
La Verde is
located in an area with excellent infrastructure: Power, rail and
water. Lazaro Cardenas, Mexico's
third largest port on the Pacific Ocean is 180 km from the site.
Significant upside potential remains for the two known zones of
porphyry style copper, gold and silver mineralization as drill
programs have shown both deposits remain open to depth and along
strike.
ON BEHALF OF THE BOARD OF DIRECTORS OF
CATALYST COPPER CORP.
"John W. Greenslade"
John W.
Greenslade - President, CEO (Director)
Certain information set forth in this news
release may contain forward-looking statements that involve
substantial known and unknown risks and uncertainties. These
forward-looking statements are subject to numerous risks and
uncertainties, certain of which are beyond the control of the
Company, including, but not limited to, risks associated with
mineral exploration and mining activities, the impact of general
economic conditions, industry conditions, dependence upon
regulatory approvals, and the uncertainty of obtaining additional
financing. Readers are cautioned that the assumptions
used in the preparation of such information, although considered
reasonable at the time of preparation, may prove to be imprecise
and, as such, undue reliance should not be placed on
forward-looking statements. Neither TSX Venture Exchange nor
its Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release.
SOURCE Catalyst Copper Corp.