Canadian Copper Executes Definitive Purchase Agreement for Murray Brook Project

Toronto, August 2nd, 2023 – Canadian Copper Inc. (CSE:CCI) (“Canadian Copper” or the “Company”) is pleased to announce that on August 1st, 2023, pursuant to the terms of a Letter of Intent (“LOI”) it entered into with Votorantim Metals Canada Inc., an arm’s length seller (“VM Canada” or the “Seller”), has successfully executed the definitive purchase agreement (“Purchase Agreement”) to acquire VM Canada’s entire 72% interest in the Murray Brook Joint Venture. Murray Brook is located in the Bathurst Camp of New Brunswick, Canada.

Simon Quick, CEO of Canadian Copper. “The signing of the definitive purchase agreement is terrific news for Canadian Copper and culminates a good faith multi-party negotiation since 2022. The Murray Brook resource contains 183 million pounds of copper, 1.07 billion pounds of zinc, 390 million pounds of lead, 42 million ounces of silver, and 339,000 ounces of gold and is in a tier 1 jurisdiction conducive to mine development.[1] This large 18 million tonne deposit is strategically situated within 10 km (Figure A) of a well-maintained concentrator facility and sits between two previous mining operations. We believe the Bathurst Camp area remains highly prospective for much-needed new critical mineral discoveries while presenting continued regional asset consolidation opportunities.”

Transaction Consideration

The Company and Seller agreed to the following considerations under the LOI signed February 13, 2023. The below enumerated list provides a completed list of deliverables and obligations regarding the transaction at closing of the Purchase Agreement:

  1. A C$250,000 deposit paid to Seller upon expiration of Right of First Refusal. (Condition satisfied)
  2. The execution of a definitive purchase agreement. (Condition satisfied)
  3. A C$750,000 installment to be paid by the Company to the Seller. (Condition satisfied)
  4. The issuance of 2,000,000 units of Canadian Copper. Each unit to consist of one common share priced using the 30-day volume-weighted average price (“VWAP”) ending on the date immediately prior to the closing date of the Purchase Agreement (“Unit Price”) with a twelve month hold period, and one full warrant exercisable for five years at an exercise price that is a 50% premium to the Unit Price. (Condition satisfied)
  5. A 0.25% net smelter return (“NSR”) royalty on the MB asset. 50% of NSR can be repurchased by the Company for C$1.0 M. The NSR has a zinc price sliding scale defined as: <US$1.50/lb = 0.25%, US$1.50-1.59/lb = 0.50%, US$1.59-1.68/lb = 0.75%, >US$1.68/lb = 1%. (Condition satisfied)
  6. The replacement of the Seller’s bond provided to the Government of New Brunswick totaling C$2,000,000 within three months of closing the transaction. (To be completed November 2023)
  7. A final installment of C$2,000,000 to be paid by the Company to the Seller within 31 days of commercial production.

[1] See press release titled “Canadian Copper to Acquire Large 18 Million Tonne VMS Deposit” posted on SEDAR on June 13, 2023 by Canadian Copper Inc.

Figure A: Murray Brook Deposit Location
Qualified Persons

Mr. Eugene Puritch, P.Eng., FEC, CET, President of P&E Mining Consultants Inc. and independent Qualified Person as defined in NI 43-101, has reviewed and approved the scientific and technical content of 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 85,322,540 shares issued and outstanding in the Company.

For more information, please contact:

Simon Quick, Director and CEO   |   (905) 220-6661   |   |

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 Murray Brook acquisition, Ministerial approvals, the growth of Canadian Copper’s Mineral Resources, future exploration programs, 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 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.

Picture of Simon Quick
Simon Quick

Simon's experience includes early stage permitting, project development through to design engineering, construction, and final turnover. He joins Canadian Copper from McEwen Mining Inc. where he was Vice President of Projects. He has an honours degree in Economics from Bishop’s University and an Executive MBA from the Kellogg School of Management at Northwestern University.

Sign up for our Investor Mailing List