CONE - Canada One to Acquire Contiguous Land Package Doubling Size of Copper Dome Exploration Area Princeton British Colombia
(TheNewswire)
Vancouver , B.C. - TheNewswire - September26, 2023 - Canada One MiningCorp . (“ Canada One ” or the “ Company ”) (TSXV:CONE) (OTC:COMCF)(FSE:AU31) is pleased toannounce it has entered into a share purchase agreement (the“ Purchase Agreement ”), dated September 25, 2023, with Rockhound Copper Inc. (“ Rockhound ”) and each of the shareholders ofRockhound (collectively, the “ Vendors ”), pursuant to which the Companywill acquire all of the issued and outstanding share capital ofRockhound (the “ Acquisition ”). Rockhound owns 2,974 hectares(“ Copper DomeSouth ”) of prospective ground contiguous tothe south of the Company’s existing Copper Dome Project (the“ Copper DomeProject ” or the “ Property ”) locatedin Princeton , British Columbia .
Mr. Peter Berdusco , President and CEO of Canada One commented: “We feel veryfortunate to secure a large contiguous land package in the highlysought after, competitive location just south of the Copper Mountain Mine operated by HudbayMinerals . This not onlydoubles our land position, but it will also provide us with additionalprospective ground greatly expanding our exploration at Copper Dome .”
Highlights
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The Acquisition will increase the Copper DomeProject’s exploration area from 2,262 to 5,236 hectares
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Copper Dome South is roughly 6kms south of the Copper Mountain Mine site (see Figure 1
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Historical Titan 24 geophysical survey identified 2 high chargeability zonesanomalies, both over 1km in length and 300 m in depth
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Historical airborne mag survey identified 7 targetareas for exploration follow?up
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Recent soil geochemical sampling at Copper Dome Southhas identified anomalies for Cu, Zn, precious and platinum groupmetals
Terms of the Purchase Agreement
Under the terms of the PurchaseAgreement, in consideration for all the issued and outstanding sharesof Rockhound, the Company will, upon closing of the Acquisition (the“ Closing ”): (i) issue 12,000,000common shares of the Company (the “ Consideration Shares ”) to the Vendors; (ii) and make a cashpayment of $20,000. In addition, theCompany will make a further cash payment of $20,000 within sixmonths of the Closing. The Consideration Shares issued to the Vendorsare issued at a deemed value of $0.09per Consideration Share, for an aggregate value of $1,080,000 , and represents 26.3% of the issued and outstandingcommon shares of the Company on a post?issuance basis.
Under the terms of the Purchase Agreement, if theCompany drills 0.15% copper or greater over a 100 meter orgreater interval length on Copper Dome South, it will issue anadditional bonus of 1,000,000 common shares. If a preliminary economicassessment is completed on Copper Dome South, the Company will issue afurther bonus of 1,000,000 common shares. Copper Dome South is alsosubject to a 3% net smelter royalty infavor of the Vendor. The Company has an option to purchase up to 2% of the net smelter royalty for $2,000,000.
The Company is relying on the prospectus andregistration exemption under Section 2.16 of National Instrument 45-106 – ProspectusExemptions in issuing the Consideration Shares.As a result, the Consideration Shares will not be subject to a holdperiod. No finders’ fees or commissions are payable in connectionwith completion of the Acquisition.
Closing of the Acquisition is subject to a number ofconditions, including: the approval of the TSXVenture Exchange (the “ Exchange ”) and thesatisfaction of all other closing conditions specified in the Purchase Agreement . The Acquisition does not involve any Non-Arm’s Length Parties (as definedin the policies of the Exchange) to the Company.
In connection with Acquisition, Rockhound does not haveany material liabilities and the Company does not expect to assume anymaterial obligations related to Copper Dome South, nor does it expectto devote the majority of its working capital or resources to thedevelopment of Copper Dome South. The primary focus of the Company atthis time remains the planned exploration and drilling work at theexisting Copper Dome Project. As a result, the Acquisition does notconstitute a “fundamental acquisition” for the Company within thepolicies of the Exchange. The issuance of the Consideration Shares tothe Vendors will not result in a change of control of the Company,within the meaning of applicable securities laws and the policies ofthe Exchange.
Copper Dome South Overview
Past work on Copper Dome South comprises of severalexploration programs going back as early as 1972 . Theseprograms were small and limited in extent. No major explorationprograms were undertaken at the property until 2009 .
In 2009, Quantec Geosciences conducted an 8.2km Titan24 DC/IP survey on behalf of Supreme Resources Ltd. The two-linesurvey each 4.1kms in length, in a north south direction, delineatedtwo high chargeability anomalies on line 82100E and 83100E.
Line 82100E, shows a high chargeability zone extending2km in length and over 400m in depth and is open to the south. Line83100E, located 1km to the east of line 82100E shows a highchargeability zone 1km in length, within a magnetic low signature witha dimension of 400m by 400m wide, within a highchargeability setting extending past 400m in depth.
Lines 82100E and 83100E also show an extensive highlychargeable feature in the southern end of the line, open at depth.This zone covers almost 2 km of line 82100E, and over 1 km of line83100E.
An Airborne Magnetometer survey conducted in 2020indicates magnetic signatures associated with northwest southeasttrending faults. Several targets were identified with similargeophysical signatures to the east and west in the surrounding claimarea.
The most recent exploration work on the property has delineated two soil geochemical anomalies forcopper/zinc and elevated precious and platinum groupmetals .
Figure 1: Original Copper Dome Project Area
including Newly Acquired Land Package (Copper Dome South)
Copper Dome Project
The Property is contiguous to Hudbay Minerals Inc.’s (TSX: HBM) currently producingCopper Mountain Mine, which hosts a proven and probable mineralreserve of 702 Mt of 0.24% Cu (cumtn.com) . The Property’s northern boundarylies 1.5km from the mine’s deposits.
Copper Mountain Mine
The Copper Mountain Mine, which is contiguous to thenorth of the Copper Dome Project, is a conventional open pit, truckand shovel operation. The mine has a 45,000 tonnes per day plant thatutilizes a conventional crushing, grinding and flotation circuit toproduce copper concentrates with gold and silver credits. A new lifeof mine plan, to expand the mill to 65,000 tonnes per day, furtherincreases average annual production to 138 million pounds of copperequivalent and reduces all-in costs to US$1.76 per pound of copperover the first 20 years of a 32-year mine life. The 65,000 tonnes perday mill expansion, including the integration of New Ingerbelle,brings Copper Mountain Mine’s after-tax NPV at an 8% discount toUS$1.245 billion (see Life of Mine Plan Expansion Study TechnicalReport, Copper Mountain Mining Corporation, September 2022).
The Company cautions that the discoveries andobservations on properties in proximity to the Copper Dome Project arenot necessarily indicative of the presence of similar mineralizationor geology on the Property.
Qualified Person
The technical information contained in this newsrelease has been reviewed and approved by Freeman Smith , P.Geo, a Qualified Person for the purposes of NationalInstrument 43?101.
For further information, interested parties areencouraged to visit the Company’s profile on SEDAR+ ( www.sedar.com ), its website at www.canadaonemining.com or contactthe Company at ir@strategixir.com .
On behalf of the Board of Directors of
President and Chief Executive Officer
Forward-LookingStatements
This press release includes certain“ forward-lookinginformation ” and“ forward-lookingstatements ” (collectively“ forward-lookingstatements ”) within themeaning of applicable Canadian securities legislation. All statements,other than statements of historical fact, included herein, withoutlimitation, statements relating to the future operating or financialperformance of the Company, are forward looking statements.Forward-looking statements are frequently, but not always, identifiedby words such as “ expects ”, “ anticipates ”, “ believes ”, “ intends ”, “ estimates ”, “ potential ”, “ possible ”, and similar expressions, orstatements that events, conditions, or results “ will ”, “ may ”, “ could ”, or “ should ” occur or be achieved. Forward-lookingstatements in this press release relate to, among other things:statements relating to the successful closing of the Acquisition and anticipated timingthereof and the intended use of proceeds. Actual future results maydiffer materially. There can be no assurance that such statements willprove to be accurate, and actual results and future events coulddiffer materially from those anticipated in such statements. Forwardlooking statements reflect the beliefs, opinions and projections onthe date the statements are made and are based upon a number ofassumptions and estimates that, while considered reasonable by therespective parties, are inherently subject to significant business,technical, economic, and competitive uncertainties and contingencies.Many factors, both known and unknown, could cause actual results,performance or achievements to be materially different from theresults, performance or achievements that are or may be expressed orimplied by such forward-looking statements and the parties have madeassumptions and estimates based on or related to many of thesefactors. Such factors include, without limitation: the timing,completion and delivery of the referenced assessments and analysis.Readers should not place undue reliance on the forward-lookingstatements and information contained in this news release concerningthese times. Except as required by law, the Company does not assumeany obligation to update the forward-looking statements of beliefs,opinions, projections, or other factors, should they change, except as required by law.
TSX VentureExchange Disclaimer
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policiesof the TSX VentureExchange ) acceptsresponsibility for the adequacy or accuracy of thisrelease .
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