Vancouver, B.C., October 26, 2023 – Canada One Mining Corp. (“Canada One” or the “Company”) (TSXV: CONE) (OTC: COMCF) (FSE: AU31) is pleased to announce it has entered into an agreement (the “Option Agreement”) pursuant to which it will be granted an option to acquire 100% interest in the CM1 Copper Property (the “Property”), from arm’s length vendors (the “Vendors”). The Property is located contiguous to the Company’s flagship Copper Dome Project, Princeton, British Columbia.
Mr. Peter Berdusco, President and CEO of Canada One commented: “We continue to acquire key properties at this favorable time in the markets and are delighted to add CM1 to our extensive land position immediately south of Hudbay’s Copper Mountain Mine. Canada One is focused on world-class mineral belts with infrastructure and potential for discovery of mineable deposits. CM1 increases our land position at Copper Dome and we look forward to executing exploration campaigns in an effort to unlocking its discovery potential.”
- CM1 Property Highlights
- Approximately 1,054 hectares in size
- Contiguous to the Company’s flagship Copper Dome Project
- Located 4 km south of Hudbay Mineral’s producing Copper Mountain Mine (1,132 Mt @ 0.22% Cu; 0.09 g/t Au; 0.64 g/t Ag; Total Measured and Indicated1,2)
- Property contains the Ox Copper Showing (disseminated chalcopyrite-magnetite)
- Altered porphyry intrusions hosted in reactive Nicola Group mafic volcanic rocks
- Extensive porphyry style alteration footprint (chlorite-epidote-calc-silicate skarn)
- Relatively under-explored.
Figure 1. The location of the CM1 Copper Property, Copper Dome Project and Copper Mountain Mine. Note that the Copper Mountain Mine provides geologic context for Canada One’s land position, but this is not necessarily indicative that the land position hosts similar grades or tonnages of mineralization.
- Transaction Terms
Under the terms of the Option Agreement, the Company will be granted the right to acquire 100% interest in the Property in consideration for completing a series of cash payments totaling $225,000, issuing a total of 2,000,000 common shares of the Company (the “Shares”), and incurring expenditures on the Property of $225,000. The Company is required to make the cash payments, issue the Shares and incur the expenditures, in accordance with the below in order to maintain the Option Agreement in good standing:
- 600,000 Shares and $12,500 cash within five business days of receipt of the approval of the TSX Venture Exchange of the Option Agreement (the “TSXV Approval”);
- an additional 350,000 Shares and $25,000 cash on or before the first anniversary of TSXV Approval;
- an additional 350,000 Shares and $37,500 in cash on or before the second anniversary date of TSXV Approval;
- an additional 350,000 Shares and $50,000 in cash on or before the third anniversary date of TSXV Approval;
- an additional 350,000 Shares and $100,000 in cash on or before the fourth anniversary date of TSXV Approval;
- incur $50,000 in expenditures on the Property before October 15, 2024;
- incur a further $75,000 in expenditures on the Property before October 15, 2025; and
- incur a further $100,000 in expenditures on the Property before October 15, 2026.
Assuming the Company exercises the option and acquires the Property, it will remain subject to a two percent (2.0%) net smelter return royalty in favor of the Vendors on mineral products produced from the Property. Fifty-percent (50%) of the royalty can be purchased from the Vendors at any time by completing a one-time cash payment of $1,000,000.
- Closing of the Transaction
Closing of the transaction remains subject to a number of conditions, including the completion of any necessary financing, the approval of the TSX Venture Exchange and the satisfaction of other closing conditions customary in transactions of this nature.
The transaction cannot close until the required approvals are obtained, and the outstanding conditions satisfied. There can be no assurance that the transaction will be completed as proposed or at all. No finders’ fees or commissions are payable in connection with the transaction.
References
1 Klue, R., Redmond, P., Alberto, L.C., Simonian, B., Humala, A., Weston, S., 2022. COPPER MOUNTAIN MINE LIFE-OF-MINE PLAN AND 65 KT/D EXPANSION STUDY UPDATE NI 43-101 TECHNICAL REPORT BRITISH COLUMBIA, CANADA. Report Date: September 30, 2022. Effective Date: August 1, 2022.
2 The Copper Mountain Mine Mineral Resource Estimate includes a measured resource 597 Mt @ 0.23% Copper, 0.10 g/t Gold, 0.71 g/t Silver, an Indicated resource of 535 Mt @ 0.20% Copper, 0.09 g/t Gold, 0.57 g/t Silver and an inferred resource of 446 Mt @ 0.19% Copper, 0.09 g/t Gold, 0.54 g/t Silver
- Qualified Person
All scientific and technical information in this news release has been prepared by, or approved by Daniel MacNeil, PGeo. Mr. MacNeil is a qualified person for the purposes of National Instrument 43-101 – Standards of Disclosure for Mineral Projects.
- Contact Us
For further information, interested parties are encouraged to visit the Company’s website at www.canadaonemining.com, or contact the Company by email at ir@strategixir.com, or by phone at 1.877.844.4661.
On behalf of the Board of Directors of
CANADA ONE MINING CORP.
Peter Berdusco
President and Chief Executive Officer
