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Under the terms of the Option Agreement, Allied may exercise the Option to acquire a 100% interest in Klondike in exchange for:
Incurring an aggregate of
$4,750,000 in exploration expenditures on Klondike over a period of four years, with at least$500,000 to be spent prior to the first anniversary of the closing date;Making an aggregate of
$400,000 in cash payments to Cloudbreak Subco and Alianza in accordance with their pro rata interest over a period of four years;Issue anaggregate of 7,000,000 common shares (theCommon Shares”) in the capital of Allied to Cloudbreak Subco and Alianza in accordance with their pro rata interest prior to the second anniversary of the closing of the transaction (the “Closing Date”);
Issue an aggregate of 3,000,000 Common Share purchase warrants (theOption Warrants”) to Cloudbreak Subco and Alianza in accordance with their pro rata interest, on the third anniversary of the date of the Option Agreement. Each Option Warrant entitles the holder thereof to acquire one Common Share for a period of three years from the date of issuance of such Option Warrant at an exercise price of the greater of: (i)
$0.23 ; and (ii) the 10-day volume weighted average sale price (the “VWAP”) of the Common Shares in such date or during the applicable time period on the principal securities exchange on which such shares are then listed. The VWAP per share shall be determined by dividing the aggregate sale price of all common shares traded on such stock exchange or marker, as the case may be, during such ten consecutive trading days by the total number of Common Shares so traded;In the event that the Option is exercised Allied will grant a 2% net smelter returns royalty (NSR”) in favour of the Optionors, subject to the ability of Allied to purchase 1% of the NSR (resulting in the remaining NSR being 1%) for a purchase price of
$1,500,000 within 30 days of commercial production on Klondike.In the event that Allied files on SEDAR an NI 43-101 technical report establishing the existence of a resource on any portion of Klondike of at least 50,000,000 tonnes of either copper or copper equivalent at a minimum cut-off grade of 0.50% copper or copper equivalent and categorized as a combination of inferred resources, indicated resources and measured resources, then Allied will also issue a further 3,000,000 Common Share purchase warrants (theAdditional Warrants”) to Cloudbreak Subco and Alianza in accordance with their pro rata interest exercisable for a three year term at a price to the greater of (i)
$0.23 ; and (ii) the 10-day volume weighted average sale price (the “VWAP”).
About the Klondike Property
The Klondike Property is located approximately 25 kilometres south of
A recent reconnaissance program (see news release dated
Copper mineralized sandstones at the Northeast Fault target can be traced along the fault and outboard from it into the adjacent sandstones over an area 200 metres long by 100 metres wide before becoming obscured beneath gravel cover. Further anomalous copper, including 2.1 metres of 463 ppm copper, was encountered over one kilometre to the northwest where the structure and host strata next appear from beneath the same gravel cover.
At Klondike, documented copper exploration ceased in the 1960s with subsequent exploration targeting uranium the 1970s. Previous workers reported high-grade copper mineralization highlighted by results of 6.3% copper and 23.3 g/t silver in outcrop. In addition to its high-grade potential, disseminated copper-silver mineralization has been observed which may be amenable to modern open pit mining with Solvent Extraction Electro Winning (“SXEW”) processing similar to the
The project is road accessible year-round, traveling two kilometres of gravel road from paved highway. The project is comprised of 76 mining claims on Federal mineral rights managed by the BLM, in addition to an Exploration Permit and an exclusive right to a State lease from the
Figure 1.Klondike Geology and Copper Results Map
Click Image To View Full Size
About the
Under the terms of the Alliance, either Cloudbreak Discovery Plc or
About Cloudbreak Discovery PLC
Cloudbreak Discovery PLC, is a leading natural resource project generator, working across a wide array of mineral assets that are being developed and managed by an experienced team with a proven track record. Value accretion within the projects being developed by Cloudbreak’s generative model enables a multi-asset approach to investing and exploration. Diversification within the mining sector and amongst resource classes is key to withstanding the cycles of natural resource investing.
About Allied Copper Corp.
Allied Copper Corp. is headquartered in
About
Alianza employs a hybrid business model of joint venture funding and self-funded projects to maximize opportunity for exploration success. The Company currently has gold, silver and base metal projects in
Alianza is listed on the
Mr.
For further information, contact:
Tel: (604) 807-7217 Fax: (888) 889-4874 slogan@renmarkfinancial.com Tel: (416) 644-2020 or (212) 812-7680 www.renmarkfinancial.com To learn more visit:www.alianzaminerals.com |
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