In February this year junior copper explorer Coro Mining (COP-T) announced its intention to buy a working mine in Chile from private hands called "Cerro Negro", the ticket price being $38m.
After the DD period (everything seemed OK to the company) and working with Dundee Corp., it raised an initial $3m for working capital and transaction purposes in late August.
The second tranche of the necessary financing was to place 8m shares at $1.50 a pop (with a 1/2 warrant attached) for $12m proceeds.
As the market turned, COP-T got an extension on the time limit for the deal (to October 3rd) and dropped the placement price to 12m shares at $1.00 to raise the same amount.
On Oct 3 2008, COP-T threw in the towel and said that it was dropping the purchase due to market conditions, credit market and copper prices.
Moral of this story is; if you're going to hold junior miners right now, hold those companies with cash at bank and conservative business plans, not companies with $3.2m at bank, $1.6m in current liabilities (as at 2q08) and ideas above their station. And by the way, the company has already burned through that $3m placement
