CANADIAN COPPER INC. Canadian Copper Inc. announced that, pursuant to the terms of a Letter of Intent it entered into with Votorantim Metals Canada Inc., an arm's length seller, it intends to acquire VM Canada's entire 72% interest in the Murray Brook Joint Venture. Murray Brook is located in the Bathurst Camp of New Brunswick, Canada. The Company and Seller have agreed to the following considerations under the LOI signed February 13, 2023, which is subject to exchange approvals, and the execution of a definitive purchase agreement.
A CAD 250,000 deposit paid to Seller upon expiration of Right of First Refusal. A CAD 750,000 installment to be paid by the Company to the Seller upon PA execution. The issuance of 2,000,000 units of Canadian Copper.
Each unit to consist of one common share priced using the 30-day volume-weighted average price ("VWAP") ending on the closing date of the PA with a twelve month hold period, and one full warrant exercisable for five years at an exercise price that is a 50% premium to the Unit Price. . A 0.25% net smelter return ("NSR") royalty on the MB asset.
50% of NSR can be repurchased by the Company for CAD 1.0 Million. The NSR has a zinc price sliding scale defined as:
A final installment of CAD 2,000,000 to be paid by the Company to the Seller within 31 days of commercial production. After the Company satisfies conditions #1-5, Canadian Copper will have completed its purchase of a 72% interest in the MB Joint Venture, and the minority partner will retain the remaining 28% interest. The joint-venture agreement ("JVA") stipulates that the minority party contribute its proportionate share for expenditures or be diluted.
There is no minority party dilution provision where their interest converts to an NSR. The Murray Brook deposit is the 5th1 largest VMS deposit within the Bathurst Camp, which ranks 3rd globally as a major VMS district. Murray Brook has a historical resource estimate prepared in accordance with the requirements of Canadian National Instrument 43-101 - Standards of Disclosure for Mineral Projects . The Measured and Indicated Mineral Resource is 18 million tonnes grading 0.47% Cu, 2.73% Zn, 0.99% Pb, 42 g/t Ag, and 0.59 g/t Au.
The contained copper and zinc metal within this Mineral Resource is approximately 210 million pounds of copper and 1.15 billion pounds of zinc. The open pit Mineral Resource is summarized below in Table A. The mineralization forms a coherent massive sulphide deposit hosted within a sheath fold; enveloped by chlorite-sericite alteration as a halo. There are two distinct lenses to the deposit; a western lens which is deeper and zinc-rich and an eastern lens that is shallower and copper-rich with some zinc. The bottom of the deposit is approximately 350 meters below surface. Examples of the higher-grade thick intervals are, MB-2011-49: intersected 148 meters from 32 meters grading 0.61% Cu, 3.82% Zn, 0.63 g/t; Au, and 56 g/t Ag.
MB-2012-138: intersected 44 meters from 182 meters grading 0.18% Cu, 8.49% Zn, 4.58%; Pb, 0.59 g/t Au, and 152 g/t Ag. MB-2017-01: intersected 53 meters from 27 meters grading 5.8% Zn, 2.8% Pb, 1.05 g/t Au; and 77 g/t Ag.
