Cerro Resources Announces Closing of Placement
LONGUEUIL, QUEBEC -- (Marketwire) -- 03/04/11 -- Cerro Resources NL (ASX: CJO)(TSX VENTURE: CJO) (the 'Company') announces that it has completed its placement announced on February 25, 2011 and issued a total of 89,290,470 fully paid ordinary shares at a price of A$0.20 per share for gross proceeds of A$17,858,094. The shares were issued without disclosure to the investors under Part 6D of the Australian Corporations Act 2001.
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 and 5,000,000 compensation options, each of which is exercisable to acquire one ordinary share at an exercise price of A$0.27 cents per share for a period of two years from closing.
The placement is subject to final acceptance by the TSX Venture Exchange. In accordance with Australian laws and regulations, the Company's shareholders will be asked to ratify this placement at the next general meeting of the 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 (www.sedar.com).
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:
Tony McDonald, Managing Director
Craig McPherson, Chief Financial Officer
61-7-3252-0122
For North America, please contact:
Ms. Gerri Paxton, Manager Investor Relations
514-544-2696
gpaxton@cerroresources.com
www.cerroresources.com