October 2, 2008 / 4:06 PM / 11 years ago

UPDATE 1-Coro Mining says not to buy Cerro Negro copper mine

(Recasts; adds details)

Oct 2 (Reuters) - Coro Mining Corp (COP.TO) said it will not proceed with its acquisition of Cerro Negro copper mine in Chile at this time due to credit market conditions and near-term weakness in copper price.

Shares of Coro fell 33 percent to a 52-week low of 60 Canadian cents Thursday on the Toronto Stock Exchange.

Coro said it also agreed with Dundee Global Resources LP not to complete the previously proposed amended financing related to the deal.

“Although disappointing, the company believes that it is prudent not to exercise our option over Cerro Negro in the current environment and possibly jeopardize our other projects as a result,” Chief Executive Alan Stephens said in a statement.

Coro said market conditions have changed dramatically since the original acquisition terms were negotiated in February.

Near-term weakness in copper price due to slowing economies worldwide will hurt economics at Cerro Negro, it said. (Reporting by Ratul Ray Chaudhuri in Bangalore; Editing by Deepak Kannan)

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