Melius Metals Announces Closing of $ 1,368,750 Private Placement and Provides Corporate Update

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Melius Metals Announces Closing of $ 1,368,750 Private Placement and Provides Corporate Update

Toronto, January 20th, 2022 – Melius Metals Corp. (“Melius” or the “Company”) is pleased to announce that it has completed its non-brokered private placement (the “Private Placement”) consisting of 5,475,000 units (the “Units”) at a price of $0.25 per Unit for gross proceeds of $1,368,750. Each Unit consists of one (1) common share of the Company (each, a “Share”) and one-half-of-one (1/2) Share purchase warrant (each, a “Warrant”). Each full Warrant entitles the holder thereof to purchase one (1) additional Share of the Company for a period of 36-months from closing at a price of $0.40 per Share. The Company currently has a cash balance of $2,437,600 as January 19, 2022.

Corporate Update

Several milestones have been achieved by the Company since the signing of the option agreement dated June 30th, 2021, with Puma Exploration Inc. (TSXV: PUMA, OTC: PUXPF) (“Puma”). In summary, the Company has:

Appointed of Mr. Simon Quick as Chief Executive Officer.
Completed two separate Qualifying NI 43-101 Technical Reports on Chester and Turgeon, that are compatible with listing requirements. For additional Chester and Turgeon details, see the Puma press release:
- https://www.globenewswire.com/en/news-release/2021/11/25/2341203/0/en/Puma-Exploration-Updateson-Copper-Transaction-With-Melius-Metals.html
Melius has sufficient funds to commence its phase one proposed work programs as outlined in these reports.
Closed two additional private placement financings for total proceeds of $1,500,000.
Completed a 26-hole 2,139-meters drilling campaign at the Chester Project designed to validate the historical resource model, test resource gaps between several known zones, and identify the previously untested presence of precious metals (Au-Ag) mineralization. The drilling campaign also fulfilled one of the remaining two (2) Chester property acquisition conditions.
Made a cash payment of $100,000 to Puma in fulfillment of the other Chester property acquisition condition.

In its outlook into the first half of 2022, the Company plans to announce drill results from its 26-hole campaign at the Chester Project as-well as issue an updated Mineral Resource Estimate for the property.

— Simon Quick

Melius is currently finalizing its preliminary prospectus for the Canadian Stock Exchange listing and estimates draft submittal no later than January 31, 2022. Subject to regulatory approval, Melius shares are expected to commence public trading in Q2 2022.

Qualified Perso

Dominique Gagné, P. Geo, an independent qualified person as defined by Canadian National Instrument 43-101 standards, has reviewed and approved the geological information reported in this news release. Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accept responsibility for the adequacy or accuracy of this release. Mr. Gagné is independent of the Company.

For more information, please contact:

Simon Quick, Director and CEO | (905) 220-6661 | simon@canadiancopper.com | ir@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 PEA, opportunities, combined strategy, 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 Factors” in the Company’s annual management discussion and analysis for the year ended October 31, 2024 and other filings of the Company with the Canadian Securities Authorities, copies of which can be found under the Company’s profile on 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.

Cautionary Note Regarding PEAs and Mineral Resource Estimates

This preliminary economic assessment is preliminary in nature and includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the preliminary economic assessment will be realized. Until mineral deposits are actually mined and processed, Mineral Resources must be considered as estimates only. Mineral Resource Estimates that are not Mineral Reserves have not demonstrated economic viability. The estimation of Mineral Resources is inherently uncertain, involves subjective judgement about many relevant factors and may be materially affected by, among other things, environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant risks, uncertainties, contingencies and other factors described in the Company’s public disclosure available on SEDAR+ at www.sedarplus.ca. The quantity and grade of reported “Inferred” Mineral Resource Estimates are uncertain in nature and there has been insufficient exploration to define “Inferred” Mineral Resource Estimates as an “Indicated” or “Measured” Mineral Resource and it is uncertain if further exploration will result in upgrading “Inferred” Mineral Resource Estimates to an “Indicated” or “Measured” Mineral Resource category. The accuracy of any Mineral Resource Estimates is a function of the quantity and quality of available data, and of the assumptions made and judgments used in engineering and geological interpretation, which may prove to be unreliable and depend, to a certain extent, upon the analysis of drilling results and statistical inferences that may ultimately prove to be inaccurate. Mineral Resource Estimates may have to be re-estimated based on, among other things: (i) fluctuations in mineral prices; (ii) results of drilling, and development; (iii) results of future test mining and other testing; (iv) metallurgical testing and other studies; (v) results of geological and structural modeling including block model design; (vi) proposed mining operations, including dilution; (vii) the evaluation of future mine plans subsequent to the date of any estimates; and (viii) the possible failure to receive required permits, licenses and other approvals. It cannot be assumed that all or any part of a “inferred” or “indicated” Mineral Resource Estimate will ever be upgraded to a higher category. The Mineral Resource Estimates disclosed in this news release were reported using CIM Standards in accordance with NI 43-101.

April 20, 2022
5:07 pm

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.

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