VANCOUVER, BC, Oct. 18,
2022 /CNW/ - Coast Copper Corp. ("Coast Copper" or
the "Company") (TSXV: COCO) is pleased to announce it
has closed the asset purchase agreement (the "Asset Purchase
Agreement") announced on August 4,
2022 with an arm's-length reporting issuer (the
"Purchaser"), pursuant to which the Company has sold a 100%
interest in the Company's Gin, Bonanza and Eldorado properties (collectively, the "Red
Chris Properties") to the Purchaser for an aggregate purchase
price of $3,000,000 in cash and
shares (the "Purchase Price"). The Company has obtained the
conditional acceptance from the TSX Venture Exchange for the Asset
Purchase Agreement.
Asset Purchase Agreement
As part of the Purchase Price, Coast Copper has received the
first tranche cash payment of $250,000 and common shares of the Purchaser with
an aggregate value of $250,000. Under
the terms of the Asset Purchase Agreement, at each six-month
anniversary of the closing date of the transaction (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 Eldorado property is
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 transaction is subject to final approval of the TSX Venture
Exchange. The Purchaser 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
NR22-13
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 future
payments under the Asset Purchase Agreement, the final approval of
the Exchange to the Asset Purchase Agreement, 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: 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.
SOURCE Coast Copper Corp.