Canadian base and precious metals producer HudBay Minerals (TSE:HBM) (NYSE:HBM) has made a $2.45 million investment in Cuoro Resources Corp (CVE:CUA) through a private placement, for a stake of just over 15%, it said Thursday.
The funds will be used for the exploration of Cuoro's Santa Elena property in the Antioquia district of Colombia.
Under the terms of the agreement, HudBay, with assets in North and Central America, will purchase 2.45 million Cuoro units at price of $1.00 each.
Each unit consists of one common share, and one half of one share purchase warrant, with each whole warrant entitling HudBay to acquire one additional share at a price of $1.30 each, for a period of two years.
Cuoro has also given HudBay the option to participate in future equity financings, allowing HudBay to maintain its stake at the time, for so long as HudBay holds at least 5% of Cuoro.