Toronto, December 20th, 2022 – Canadian Copper Inc. (CSE:CCI) (“Canadian Copper” or the “Company”) is pleased to announce that is has closed its previously announced private placement consisting of 4,080,000 flow-through shares (the “FT Shares“) at a price of C$0.10 per FT Share for aggregate gross proceeds of $408,000 (the “FT Offering”). There were no warrants issued as part of this financing.
Simon Quick, CEO of Canadian Copper. “A big thank you to our current and new shareholders. Over the last year our Team has made substantive progress at the Chester Project; equally in terms of the expanding the known Chester copper resource, in addition to identifying new prospective areas with our regional trenching program. From a shareholder dilution and cost of capital perspective, this FT financing represented a share premium of ~30% to our last 30 trading days and was not accompanied by any warrants. We will deploy this FT Offering in a targeted manner that increases the Chester asset value.”
The proceeds of the FT Offering will be used to incur eligible “Canadian exploration expenses” that qualify as “flow-through mining expenditures” as both terms are defined in the Income Tax Act (Canada) (the “Qualifying Expenditures“) related to the Company’s projects in New Brunswick, Canada. The Company plans to incur Qualifying Expenditures on or before December 31, 2023 (or such other period as may be permissible under applicable tax legislation), and to renounce all the Qualifying Expenditures in favour of the subscribers of the FT Shares effective December 31, 2022.
It is the intention of the Company to incur, and renounce to subscribers, pursuant to the Subscription Agreement, expenses that will qualify for the Critical Mineral Exploration Tax Credit (“CMETC”), if the intended exploration program and proposed Qualifying Expenditures will qualify and it is reasonable for the Company, in its determination, to comply with the requirements of the CMETC and incur and renounce the CMETC to the Subscriber.
As a reminder, the purpose and use for this now closed FT Offering are as follows:
- Continue to advance the Chester Copper Project (“Chester”) through additional near deposit exploration work. Further, contribute to the development of regional exploration targets that may be generated by our recently completed 4000+ meter regional trenching program on the Chester Property.
- Further de-risk the Chester deposit with metallurgical test work focused on the beneficiation understanding of the Central and East Zone. These areas contributed significantly to the Mineral Resource Estimate expansion announced on November 1st, 2022 (please click here).
- Initiate preliminary ore sorting testing program. The purpose of this ore sorting program is to potentially improve the Chester copper ore body by increasing the value per ton of mill feed and reduce the amount of waste material required to mine the deposit. Further, this testing program will improve our understanding of potential toll milling opportunities and their economic viability.
- Budget and funding dependent, begin regional prospecting at the Murray Brook West Project.
The Company paid finder’s fees to certain arm’s-length third parties consisting of a cash commission of up to 7% of the gross proceeds of the FT Offering for an aggregate amount of $12,810. A statutory four month plus one day hold period will apply to all securities issued in connection with the FT Offering. The FT Offering is subject to CSE and regulatory approval.
Certain directors and other insiders of the Company participated in the Offering and subscribed into the Offering for the maximum amount permissible under applicable securities laws and regulatory rules, acquiring an aggregate of 100,000 FT Shares. Participation by the directors and other insiders in the Offering was considered a “related party transaction” pursuant to Multilateral Instrument 61- 101 – Protection of Minority Security Holders in Special Transactions (“MI 61-101”). The Company was exempt from the requirements to obtain a formal valuation and minority shareholder approval in connection with the insiders’ participation in the Offering in reliance on sections 5.5(a) and 5.7(1)(a) of MI 61-101 in that the fair market value (as determined under MI 61-101) of the securities issued under the Offering (and the consideration paid to the Company therefor) to interested parties (as defined under MI 61-101) did not exceed 25% of the Company’s market capitalization (as determined under MI 61-101).
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 70,555,000 shares issued and outstanding in the Company.