Cerro Resources Announces Closing of Placement
MONTREAL, QUEBEC -- (Marketwire) -- 12/24/10 -- Cerro Resources NL (ASX: CJO)(TSX VENTURE: CJO) (the 'Company') has given notice under Australian Corporations Act 2001 that it has issued 35,000,000 fully paid ordinary shares pursuant to a private placement at a price of AUD$0.11 per share in accordance with the Company's announcement of December 15, 2010 for gross proceeds of AUD$3,850,000.
The Company intends to use the gross proceeds of the sale of the shares on the feasibility study on the gold silver heap leach production at Cerro del Gallo, for further exploration on the Mt Philp Iron Ore Project as results are received and for working capital purposes.
Patersons Securities Limited of Sydney, Australia acted as agent in respect of the placement and received a cash commission equal to 5% of the gross proceeds from the placement. The shares issued under the placement are not subject to resale restrictions.
The placement is subject to receipt of final approval of the TSX Venture Exchange. In accordance with Australian laws and regulations, shareholders will be asked to ratify this placement at the next general meeting of shareholders.
About Cerro Resources
Cerro Resources is a precious and base metals exploration and development company. The Company is currently focused on developing the Cerro del Gallo gold/silver project in the central state of Guanajuato, Mexico and maintains an active working focus on the Mt Isa exploration project, Queensland, Australia.
Additional information about the Company is available on the Company's website at www.cerroresources.com and on SEDAR.
Forward-Looking Information
This news release contains certain 'forward-looking information' under Canadian securities laws. All statements that address future plans, activities, events or developments that the Company believes, expects or anticipates will or may occur are forward-looking information. Specifically, this news release contains forward looking information about the use of proceeds of the placement. Forward looking information is based upon assumptions by management that are subject to known and unknown risks and uncertainties beyond the Company's control, including risks related to mining exploration and the availability of financing for companies such as the Company. There can be no assurance that outcomes anticipated in the forward looking information will occur, and actual results may differ materially for a variety of reasons. Accordingly, readers should not place undue reliance on forward-looking information. The Company undertakes no obligation to update publicly or otherwise revise any forward-looking information, except as may be required by law.
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.
Contacts:
Cerro Resources NL
Tony McDonald
Managing Director
61 7 3252 0122
61 7 3252 0166 (FAX)
Cerro Resources NL
Craig McPherson
Chief Financial Officer
61 7 3252 0122
61 7 3252 0166 (FAX)
admin@cerroresources.com
For North America:
Cerro Resources NL
Ms Gerri Paxton
Manager Investor Relations
514-544-2696
gpaxton@cerroresources.com