Canadian Copper Executes Sale Agreements Valued at $2.1M
- Signed a Definitive Agreement to sell its Chester Project Option Agreement Rights for cash and shares totaling $1,395,0001,2.
- Signed a Definitive Agreement to sell its Turgeon Project Option Agreement Rights for cash and shares totaling $675,0001,2.
- Canadian Copper increases its focus on the highly prospective Murray Brook West exploration property that is contiguous to its 100% owned large Murray Brook deposit, New Brunswick's largest undeveloped open pit polymetallic resource. (See Figure A).
Toronto, March 4, 2024 - Canadian Copper Inc. (CSE: CCI) ("Canadian Copper" or the "Company") is pleased to announce that it has signed two separate conditional sale agreements to sell and transfer its Option Agreement rights for the Chester and Turgeon Projects located in New Brunswick, Canada, for total possible consideration of $2,160,0001,2 in cash and shares.
"Focus is essential when navigating the current capital markets situation for most junior miners in Canada today. We believe this strategic divestment achieves two objectives for us. First, it enables Canadian Copper to allocate capital exclusively on the advanced large open pit Murray Brook deposit and surrounding exploration ground, while still participate in Chester and Turgeon resource growth through Raptor Resources shares. Second, this transaction will strengthen Canadian Copper's balance sheet without shareholder dilution." Simon Quick, CEO of Canadian Copper.
Transaction Summary
Chester Project Definitive Sale Agreement
Canadian Copper will sell and transfer its Chester Project Option Agreement rights to Raptor Resources Ltd. ("Raptor or Buyer") for the following consideration:
- A non-refundable fee of $90,0001 paid by Raptor to the Company within 10 business days of definitive agreement execution.
- A $675,0001 cash payment by Raptor to the Company on or before June 30, 2024. This payment is conditional on Raptor listing its company shares on the Australian Stock Exchange ("ASX").
- The issuance of 4,000,0002 Buyer shares to the Company on or before June 30, 2024.
Turgeon Project Definitive Sale Agreement
Canadian Copper will sell and transfer its Turgeon Project Option Agreement rights to Raptor Resources Ltd. for the following consideration:
- The Buyer incurring a minimum work commitment of $450,000 on the Turgeon property within 12 months of definitive agreement execution. This condition can be waived with a cash payment of $275,0001 from Raptor to the Company.
- A $675,0001,2 payment with a minimum cash component of $270,0001 by Raptor to the Company on or before March 4th, 2025. This payment is conditional on Raptor listing its company shares on the ASX.
The Company is further amending the Puma Option Agreement changing the terms of the remaining two anniversary payments to Puma Exploration Inc. to reflect the sale of the Chester and Turgeon Projects to Raptor. The Company will pay a finder's fee to an arm's-length third party of 5% in cash at each successful milestone of the Chester and Turgeon transactions.
Figure A: Asset Sale Map
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Qualified Person
Mr. Eugene Puritch, P.Eng., FEC, CET, President of P&E Mining Consultants Inc. and independent Qualified Person as defined in NI 43-101. Mr. Puritch is responsible for the Murray Brook MRE and has reviewed and approved the scientific and technical content of this news release.
Mr. Michael Dufresne, M.Sc., P.Geol., P.Geo. is President and a Principal of APEX Geoscience Ltd. and is an independent QP. Mr. Dufresne is responsible for the Chester MRE and has reviewed and approved the geological information reported in this news release.
About Canadian Copper Inc.
Canadian Copper is a Canadian-based mineral exploration company with a copper and base metals portfolio of historical resources and grassroots projects. The Company is focused on the prolific Bathurst Mining Camp (BMC) of New Brunswick, Canada. There are currently 90,044,762 shares issued and outstanding in the Company.
For more information, please contact:
Simon Quick, Director and CEO
email simon@canadiancopper.com / ir@canadiancopper.com
phone (905)-220-6661
web www.canadiancopper.com
Neither the CSE nor its Market Regulator (as that term is defined in the policies of the CSE) accepts responsibility for the adequacy or accuracy of this news release.
Cautionary and Forward-Looking Statements
This news release includes certain forward-looking statements and forward-looking information (collectively, "forward-looking statements") within the meaning of applicable Canadian securities legislation. All statements, other than statements of historical fact, included herein including, without limitation, statements regarding the sale of the Chester and Turgeon Projects and the anticipated business plans and timing of future activities of the Company, are forward-looking statements. Although the Company believes that such statements are reasonable, it can give no assurance that such expectations will prove to be correct. Often, but not always, forward looking information can be identified by words such as "pro forma", "plans", "expects", "will", "may", "should", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", "believes", "potential" or variations of such words including negative variations thereof, and phrases that refer to certain actions, events or results that may, could, would, might or will occur or be taken or achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to differ materially from any future results, performance or achievements expressed or implied by the forward-looking statements. Such risks and other factors include, among others, statements as to the anticipated business plans and timing of future activities of the Company, including the Company's option to acquire properties under the Puma Option Agreement, the proposed expenditures for exploration work thereon, the ability of the Company to obtain sufficient financing to fund its business activities and plans, delays in obtaining governmental and regulatory approvals (including of the CSE), permits or financing, changes in laws, regulations and policies affecting mining operations, the Company's limited operating history, currency fluctuations, title disputes or claims, environmental issues and liabilities, as well as those factors discussed under the heading "Risk and Uncertainties" in the Company's annual management discussion and analysis for the year ended October 31, 2023 and other filings of the Company with the Canadian Securities Authorities, copies of which can be found under the Company's profile on the SEDAR+ website at www.sedarplus.ca. Readers are cautioned not to place undue reliance on forward-looking statements. The Company undertakes no obligation to update any of the forward-looking statements in this presentation or incorporated by reference herein, except as otherwise required by law.
1 CAD Exchange Rate (AUD:CAD) 0.9
2 ASX listing rules mandate a minimum issue price of $0.20 per share. Consideration value assumes a $0.20 price per share and CAD Exchange Rate (AUD:CAD) 0.9. https://www.asx.com.au/about/regulation/rules-guidance-notes-and-waivers/asx-listing-rules-guidance-notes-and-waivers
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