TORONTO, Oct. 24, 2014 /PRNewswire/ - Cerro Grande Mining Corporation (the "Company" or "CEG") (CEG.CAC-CNSX-CEG.O-OTCQX) announces that it closed the private placement of units of the Company (the "Placement") and the debt settlement (the "Debt Settlement") with two holding companies held by CEG directors (the "Directors") as described in the news release dated October 20, 2014.

The participation of each Director in the Placement and the Debt Settlement constituted a "related party transaction" under Multilateral Instrument 61-101- Protection of Minority Security Holders in Special Transactions ("MI 61-101").  The Company has relied on the "financial hardship" exemptions from both the formal valuation and minority shareholder approval requirements of MI 61-101 in connection with the Placement and the Debt Settlement as described in the release dated October 20, 2014.

SOURCE Cerro Grande Mining Corporation