FOR IMMEDIATE RELEASE
Cuervo Proposes Amendments to Outstanding IPO Warrants
January 16, 2009 – Toronto, ON
Cuervo Resources Inc. (CNSX-FE; FWB-CRR; “Cuervo” or the “Company”) wishes to announce that the Company proposes to amend certain terms of the outstanding Cuervo common share purchase warrants which were issued pursuant to Cuervo’s Intial Public Offering (“IPO”) on May 30, 2007. In particular, Cuervo proposes to reduce the exercise price of the warrants from $0.75 to $0.35 per share and extend the term of the warrants by twelve months from May 30, 2009 to May 30, 2010, subject to rights and obligations to accelerate the expiry date of the warrants. Under the original warrant terms Cuervo currently has the right to, at any time in its sole discretion, accelerate the expiry date of the warrants to a date which is 30 days from Cuervo’s notification to warrant holders. This right will be carried through to the amended warrants.
Pursuant to the policies of the CNSX the amended warrants must include an additional acceleration clause which provides that if the common shares of Cuervo trade at greater than $0.466 for 10 consecutive trading days then Cuervo would be required to trigger an acceleration of the expiry date of the warrants to the date which is 37 days following such 10 day period. The amendments will affect approximately 4,021,000 outstanding warrants and, pursuant to CNSX policies, will not apply to warrants issued to agents in connection with the IPO. The amendments are subject to the consent of the affected warrant holders. Cuervo is actively seeking such consent.
These proposed actions do not affect warrants that were issued pursuant to a private placement which closed on May 30, 2008. The exercise price of those warrants remains at $1.50 with an expiry date of May 30, 2010. The Company currently has 30,179,750 shares outstanding (41,856,000 fully diluted).
For further information, please contact Mr. Tom Berner, Investor Relations, at 416-203-3957 x202. Additional information about Cuervo can be found at the Company’s website at http://www.cuervoresources.com.
The Canadian National Stock Exchange (CNSX Markets Inc.) has neither approved nor disapproved of the contents of this press release.