Disclosure NewswireTMiCrowdNewswire - Sep 27, 2016
VANCOUVER, BC – Canyon Copper Corp. (TSXV: CNC) (“Canyon”), is pleased to announce that it has entered into an option agreement (“Option Agreement”) with ProAm Explorations Corporation (“ProAm”), a company listed on the TSX Venture Exchange (the “Exchange”), to earn a 71% interest in the Sams Lake Property located in Beaverhouse Lake and Factor Lake Areas of North Western Ontario and consists of 5 claims totaling 595 hectares. The Sams Lake Property is a mature exploration project that hosts nickel, copper, cobalt and palladium group metals in an ultramafic intrusive body.
Under the terms of the Option Agreement, Canyon will exercise the option to acquire a 71% interest in the Sams Lake Property by making the following cash payments, share issuances and exploration expenditures:
- Cash payment of $50,000 and 200,000 common shares of Canyon within 10 days from the date of Exchange acceptance.
- Cash payment of $50,000, 200,000 common shares of Canyon and completing $500,000 of exploration expenditures on the property before the second anniversary of the Option Agreement.
- Cash payment of $100,000, 200,000 common shares of Canyon and completing an additional $500,000 of exploration expenditures on the property before the third anniversary of the Option Agreement.
- Completing an additional $1,000,000 of exploration expenditures on the property before the six anniversary of the Option Agreement.
Under the terms of the Option Agreement, Canyon will pay a 2.5% Net Smelter Return to ProAm on commencement of commercial production. Canyon will have the right, at any time, to purchase 1% of the 2.5% Net Smelter Return for $1,500,000.
The Option Agreement and the transactions contemplated therein are subject to acceptance of the Exchange.
Private Placement Financing
Canyon also announces that it proposes to complete a private placement financing of 4,000,000 common shares at a price of $0.025 per share for gross proceeds of up to $100,000. Canyon plans to use the proceeds of the Offering for initial work plans on the Sams Lake Property and for general working capital.
Closing of the proposed Offering is subject to a number of conditions, including receipt of all necessary corporate and regulatory approvals, including approval from the TSX Venture Exchange.
Canyon has entered into a loan agreement with Metamin Enterprises Inc. (“Metamin”) dated effective September 27, 2016, whereby Metamin has agreed to loan Canyon CAD $100,000 for a period of three years at an interest rate of 10% per annum.
As additional consideration of the loan, Canyon has agreed to issue 400,000 common shares (“Bonus Shares”) to the Metamin on the first anniversary of the loan agreement.
The loan agreement and the Bonus Shares are subject to the acceptance of the Exchange.
The loan will be used for to satisfy the initial payment under the Option Agreement.
On behalf of the Board of Directors,
CANYON COPPER CORP.
Benjamin Ainsworth, President
Canyon Copper Corp.
(604) 684-9365 (FAX)
Cautionary Statement Regarding Forward Looking Information
This News Release may contain, in addition to historical information, forward-looking statements. These forward-looking statements are identified by their use of terms and phases such as “believe,” “expect,” “plan,” “anticipate” and similar expressions identifying forward-looking statements. Investors should not rely on forward-looking statements because they are subject to a variety of risks, uncertainties and other factors that could cause actual results to differ materially from Canyon’s expectations, and expressly does not undertake any duty to update forward-looking statements. These factors include, but are not limited to the following, limited operating history, proposed exploration and/or drill programs and other factors which may cause the actual results, performance or achievements of Canyon to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.
NEITHER TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.