VANCOUVER, BC, Aug. 4, 2022
/CNW/ - Coast Copper Corp. ("Coast Copper" or the "Company")
(TSXV: COCO) is pleased to announce it has entered into an asset
purchase agreement (the "Asset Purchase Agreement")
on August 4, 2022 with an
arm's-length reporting issuer (the "Purchaser") who will
acquire a 100% interest in the Company's Gin, Bonanza and
Eldorado properties (collectively,
the "Red Chris Properties") for an aggregate purchase price
of $3,000,000 in cash and shares (the
"Purchase Price").
Adam Travis, Coast Copper CEO
comments, "The sale of the Red Chris Properties will allow Coast
Copper to focus on the optioned Empire Mine property on northern
Vancouver Island. The cash portion of the purchase price will
fortify Coast Copper's treasury and assist the Company in
continuing to explore the highly prospective Empire Mine property,
while providing no dilution to the current shareholders in this
difficult market environment, and the share portion of the purchase
price will provide Coast Copper shareholders exposure to potential
future growth of the Red Chris Properties."
Asset Purchase Agreement
Under the terms of the Asset Purchase Agreement, on the closing
date of the transaction (the "Closing Date") and at each
six-month anniversary of the Closing Date, ending 30 months from
the Closing Date, the Purchaser shall pay Coast Copper $250,000 in cash and shall issue Purchaser common
shares to Coast Copper with an aggregate value of $250,000, based on the 20-day volume-weighted
average trading price of the Purchaser common shares for the
20 trading days ending on the date that is two business days prior
to each payment date.
The Red Chris Properties are subject to a 2% net smelter returns
royalty, half of which is owned by a private company controlled by
the Chief Executive Officer of Coast Copper.
The completion of the transaction is subject to standard closing
conditions, including receipt of all necessary regulatory
approvals, including the approval of the TSX Venture Exchange. The
shares issued under the transaction will be subject to a hold
period expiring four months and one day from the date of
issuance.
About Coast Copper
Corp.
Coast Copper's exploration focus is the optioned Empire Mine
property, located on northern Vancouver Island, BC, which covers
three historical open pit mines and two past-producing underground
mines that yielded iron, copper, gold and silver. Coast Copper's
other properties include its 100% owned Knob Hill NW Property
located on northern Vancouver Island and its Home Brew and
Shovelnose South Properties which are located in central BC. Coast
Copper's management team continues to review precious and base
metals opportunities in western North
America.
On Behalf of the Board of Directors:
"Adam
Travis"
Adam Travis, Chief
Executive Officer and Director
Neither the 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.
CAUTIONARY STATEMENT REGARDING
FORWARD-LOOKING INFORMATION
Certain information contained or incorporated by reference in
this press release, including any information regarding the
anticipated closing of the sale of the Red Chris Properties, and
statements as to our strategy, projects, plans or
future financial or operating performance, constitutes
"forward-looking statements." All statements, other than statements
of historical fact, are to be considered forward-looking
statements. Forward-looking statements are necessarily based on a
number of estimates and assumptions that, while considered
reasonable by Coast Copper, are inherently subject to significant
business, economic, geological and competitive uncertainties and
contingencies. Although Coast Copper believes the expectations
expressed in such forward-looking statements are based on
reasonable assumptions, such statements are not guarantees of
future performance. Known and unknown factors could cause actual
results to differ materially from those projected in the
forward-looking statements. Such factors include but are not
limited to: receipt of regulatory approvals, fluctuations in market
prices, exploration and exploitation successes, continued
availability of capital and financing, changes in national and
local government legislation, taxation, controls, regulations,
expropriation or nationalization of property and general political,
economic, market or business conditions. Many of these
uncertainties and contingencies can affect our actual results and
could cause actual results to differ materially from those
expressed or implied in any forward-looking statements made by, or
on behalf of, us. Readers are cautioned that forward-looking
statements are not guarantees of future performance and, therefore,
readers are advised to rely on their own evaluation of such
uncertainties. All of the forward-looking statements made in this
press release, or incorporated by reference, are qualified by these
cautionary statements. We do not assume any obligation to update
any forward-looking statements, except as required pursuant to
applicable laws.
SOURCE Coast Copper Corp.