/NOT FOR DISTRIBUTION TO UNITED
STATES NEWS WIRE SERVICES OR FOR DISSEMINATION IN
THE UNITED STATES/
TORONTO, May 18, 2021 /CNW/ - Doré Copper Mining
Corp. (the "Corporation" or "Doré Copper") (TSXV:
DCMC) (OTCQX: DRCMF) (FRA: DCM) is pleased to announce that it has
entered into an agreement pursuant to which Cormark Securities Inc.
and Paradigm Capital Inc., as co-lead underwriters, (collectively,
the "Underwriters"), have agreed to purchase, on a "bought
deal" private placement basis: (i) 8,000,000 common shares in
the capital of the Corporation (the "Offered Common Shares")
at a price of $1.00 per Offered
Common Share (the "Common Share Offering Price") for gross
proceeds of $8,000,000 and (ii)
2,907,000 common shares in the capital of the Corporation that
will qualify as "flow-through shares" (within the meaning of
subsection 66(15) of the Income Tax Act (Canada) and section 359.1 of the Taxation
Act (Québec)) (the "Flow-Through Shares") at a price of
$1.72 per Flow-Through Share for
gross proceeds of $5,000,040, for
aggregate gross proceeds to the Corporation of approximately
$13 million (collectively, the
"Offering").
The Underwriters will have the option, exercisable in whole or
in part at any time up to 48 hours prior to the closing of the
Offering, to arrange for the purchase of up to an additional
1,636,050 Offered Common Shares at the Common Share Offering
Price.
The net proceeds from the sale of the Offered Common Shares will
be used for exploration and development activities and for working
capital and general corporate purposes. The Corporation will use an
amount equal to the gross proceeds received by the Corporation from
the sale of the Flow-Through Shares, pursuant to the provisions in
the Income Tax Act (Canada), to incur eligible "Canadian
exploration expenses" that qualify as "flow-through mining
expenditures" as both terms are defined in the Income Tax
Act (Canada) (the
"Qualifying Expenditures") related to the Corporation's
projects in Québec, on or before December
31, 2022, and to renounce all the Qualifying Expenditures in
favour of the subscribers of the Flow-Through Shares effective
December 31, 2021. In addition, with
respect to Québec resident subscribers who are eligible individuals
under the Taxation Act (Québec), the Canadian exploration
expenses will also qualify for inclusion in the "exploration base
relating to certain Québec exploration expenses" within the meaning
of section 726.4.10 of the Taxation Act (Québec) and for
inclusion in the "exploration base relating to certain Québec
surface mining expenses or oil and gas exploration expenses" within
the meaning of section 726.4.17.2 of the Taxation Act
(Québec).
The Offering is expected to close on or about June 9, 2021, or such other date as the
Corporation and the Underwriters may agree and is subject to
certain conditions including, but not limited to, the receipt of
all necessary regulatory and other approvals including the
acceptance of the TSX Venture Exchange.
The Offering will be made way of private placement in each of
the provinces of Canada pursuant
to applicable exemptions from the prospectus requirements and, in
the case of the Offered Common Shares, such other jurisdictions, in
each case in accordance with all applicable laws, provided that no
prospectus, registration statement or other similar document is
required to be filed in such jurisdiction. The securities
issued under the Offering will be subject to a four month hold
period under applicable Canadian securities laws.
The securities offered have not been, nor will they be,
registered under the United States Securities Act of 1933, as
amended, or any state securities law, and may not be offered, sold
or delivered, directly or indirectly, within the United States, or to or for the account or
benefit of U.S. persons, absent registration or an exemption from
such registration requirements. This news release does not
constitute an offer to sell or the solicitation of an offer to buy
nor shall there be any sale of securities in any state in
the United States in which such
offer, solicitation or sale would be unlawful.
About Doré Copper Mining Corp.
Doré Copper Mining Corp. is a copper-gold explorer and developer
in the Chibougamau area of Québec,
Canada. The Corporation is focused
on implementing its hub-and-spoke development strategy by advancing
its key high-grade copper-gold brownfield projects towards a
restart of operations.
The Corporation has consolidated a large land package in the
prolific Lac Dore/Chibougamau and
Joe Mann mining camps that has
historically produced 1.6 B lbs of
copper and 4.4 M oz of gold. The land
package includes 13 former producing mines, deposits and resource
target areas within a 60-kilometre radius of the Corporation's
2,700 tpd mill (Copper Rand Mill).
Doré Copper plans to deliver a preliminary economic assessment
(PEA) of its hub-and-spoke model in late 2021. Currently, the
Corporation is completing a 16,500-metre drilling program at its
Corner Bay (Cu-Au) project which will lead to an updated mineral
resource estimate for mid-2021. In addition, Doré Copper is
expected to have a maiden mineral resource estimate for the former
producing Joe Mann mine (Au-Cu) by
end of June 2021.
For further information, please visit the Corporation's website
at www.dorecopper.com or refer to Doré Copper's SEDAR filings
at www.sedar.com.
Cautionary Note Regarding Forward-Looking Statements
This news release includes certain "forward-looking
statements" under applicable Canadian securities legislation.
Forward-looking statements include, but are not limited to,
statements with respect to the terms of the Offering, the use of
proceeds of the Offering, the timing and ability of the Corporation
to close the Offering, the timing and ability of the Corporation to
receive necessary regulatory approvals, including the acceptance of
the Offering from the TSX Venture Exchange, the renunciation to the
purchasers of the Flow-Through Shares and timing thereof, the tax
treatment of the Flow-Through Shares, and the plans, operations and
prospects of the Corporation. Forward-looking statements are
necessarily based upon a number of estimates and assumptions that,
while considered reasonable, are subject to known and unknown
risks, uncertainties and other factors which may cause the actual
results and future events to differ materially from those expressed
or implied by such forward-looking statements. Such factors
include, but are not limited to: general business, economic,
competitive, political and social uncertainties; delay or failure
to receive regulatory approvals; the price of gold and copper; and
the results of current exploration. There can be no assurance that
such statements will prove to be accurate, as actual results and
future events could differ materially from those anticipated in
such statements. Accordingly, readers should not place undue
reliance on forward-looking statements. The Corporation disclaims
any intention or obligation to update or revise any forward-looking
statements, whether as a result of new information, future events
or otherwise, except as required by law.
Neither 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 news release.
SOURCE Doré Copper Mining Corp.
