Toronto, January 30th, 2024 – Canadian Copper Inc. (“Canadian Copper” or the “Company”) (CSE:CCI) is pleased to announce that it has entered into a one third of production offtake agreement (“Offtake Agreement”) for copper concentrates from the Murray Brook deposit (“MB”) and an unsecured Credit Facility (“the Credit Facility”) of up to US$1.5 million (C$2.01 million) with Ocean Partners UK Ltd. (“Ocean Partners”).
Simon Quick, CEO of Canadian Copper, said, “First and foremost, we welcome Ocean Partners as a strategic shareholder to Canadian Copper. Ocean Partners bring in-depth technical expertise in asset evaluations and extensive knowledge of the base metal commodity market, both of which will prove invaluable to us. This new relationship between Ocean Partners and Canadian Copper is a strong endorsement of the advanced Murray Brook deposit and its unique position located less than 10 km from a fully constructed processing plant in need of a partner with ore feed.”
Brent Omland, co-CEO of Ocean Partners, said, “We recognize the strategic rationale and regional consolidation opportunity here between the Murray Brook deposit and its proximity to a nearby milling facility on care and maintenance. Murray Brook benefits from extensive existing infrastructure combined with local and provincial government support which should reduce capital and execution risk.
The purpose of the Credit Facility is to satisfy the final Murray Brook acquisition condition and replace an existing C$2,000,000 environmental bond with the New Brunswick Government. Mine Lease ownership and title transfers require Ministerial approval under the Mining Act in New Brunswick. Pending consent by the Minister, ownership and title will transfer to Canadian Copper.
Ocean Partners shall have the right to purchase a minimum of one third of the copper concentrate at market rates for the payable metals produced by the Murray Brook deposit and three other Right of First Refusal (“ROFR”) conditions. The remaining ROFR conditions are: 1) Ocean Partners will have the right to match and purchase the remaining copper concentrate produced should a 3rd party submit a bonafide offer, 2) Ocean Partners will have the right to provide offtake financing at the same terms should a 3rd party submit a bonafide offer, and, 3) Ocean Partners will have the right to match and purchase other concentrates should a 3rd party submit a bonafide offer.
Unsecured Credit Facility
The Credit Facility is an aggregate amount of up to US$1,500,000 for a period of one year with a single draw available following satisfaction of customary conditions precedent by the Company. Interest on the Credit Facility will be 10% per annum paid on execution of the Credit Facility. The interest payment consideration will be Company common shares at a fixed rate totalling 2,222,222 at a price of $0.09 per share.
Figure A: Canadian Copper’s Land Position
About Canadian Copper Inc.
Canadian Copper is a Canadian-based mineral exploration company with a copper and base metals portfolio of properties located in the prolific Bathurst Mining Camp (BMC) of New Brunswick, Canada. There are currently 87,544,760 shares issued and outstanding in the Company.