June 15 (Reuters) - Capstone Mining Corp CS.TO :
* Capstone Mining reaches agreement to sell Kutcho Project
* Capstone Mining Corp - intends to use net proceeds from sale primarily to reduce outstanding borrowings under its revolving credit facility
* Says will receive C$28.8 million in cash, common shares of desert star representing 9.9 pct of issued and outstanding shares
* Says will have right to nominate one representative to desert star board of directors under certain circumstances Source text for Eikon: ID:nPn3TDb5da Further company coverage: CS.TO