Vancouver, BC - TheNewswire - October 18, 2023 - Canada One Mining Corp. (“Canada One” or the “Company”) (TSXV:CONE) (OTC:COMCF) (FSE:AU31) is pleased to announce it has entered into a definitive option agreement (the “Transaction”), dated October 16th, 2023 with Global Genx Resources Ltd. (the “Vendor”) an arm’s length private company, pursuant to which the Company will be granted the right to earn up to a 100% interest in the Abitibi East Critical Minerals and Nellie Properties (each a “Property” and collectively, the “Properties”) located 60 kilometres northeast of the Timmins Mining Camp, Ontario.
The Properties are located on the western end of the world-class Abitibi greenstone belt, central to the Timmins Mining Camp (119 Moz Au and 337 Moz Ag historical production) (digigeodata.com), the Kidd Creek Volcanic Massive Sulphide (VMS) deposit (2.5 Mt Zn, Cu, Ag Proven and Probable) (miningdataonline.com), and the Alexo-Dundonald nickel deposit (1,254 kt Ni, Cu, Co Indicated) (class1nickel.com).
Mr. Peter Berdusco, President and CEO of Canada One commented: “These properties, central to the Timmins Camp, the Alexo-Dundonald deposit and the Kidd Creek Mine, reaffirm our commitment of exploring critical mineral projects in the premier mining belts of Canada.“
Abitibi East Highlights
Centrally located to the Timmins Mining (Au) Camp (60kms), Alexo-Dundonald (Ni-Cu-Co) deposit (20kms), and the Kidd Creek (Cu-Zn-Pb-Ag) operating mine (50kms)
Abitibi East covers 8050 Ha on the western end of the prolific Abitibi greenstone belt
No modern exploration since 1997. Past drilling has identified both VMS style and nickel mineralization
Historical sampling and assaying did not sample for gold and other critical elements - modern multi-element techniques are required
The Nellie project is located within the Abitibi greenstone belt east of Timmins within an area mapped as ultramafic rocks anomalous in nickel and copper
The project was explored by Dominion Gulf in 1947 and was drilled by Falconbridge in 1995, testing for copper
Under the terms of the Transaction, the Company will be granted the right to acquire a 51% interest in the Properties in consideration for completing a series of cash and/or share payments totaling $230,000 and $1,500,000 in work expenditures over a two-year term as follows:
a. pay $30,000 cash to the Vendor or issue and deliver to the Vendor such number of common shares of the Company as is equal in value to $30,000, within ten (10) business days of closing;
b. pay an additional $50,000 cash (total: $80,000) to the Vendor or issue and deliver to the Vendor such additional number of common shares of the Company as is equal in value to an additional $50,000 (total: $80,000), on or before the date that is one year from closing;
c. incur $500,000 of Expenditures on the Properties on or before November 15, 2024;
d. pay an additional $150,000 cash (total: $230,000) to the Vendor or issue and deliver to the Vendor such additional number of common shares of the Company as is equal in value to an additional $150,000 (total: $230,000), on or before the date that is two years from the closing; and
e. incur an additional $1,000,000 (total: $1,500,000) of Expenditures on the Properties on or before November 15, 2025.
(the above being collectively referred to as the “51% Option Payments” and, individually, a “51% Option Payment”).
Formation of Joint Venture
Upon completion of the 51% Option Payments a Joint Venture shall be deemed formed with Canada One having a 51% legal and beneficial interest in and to the Properties and the Vendor holding the balance. Thereafter, Canada One will have the sole and exclusive right and option (the “100% Option”), to acquire the remaining 49% interest in and to the Properties, free and clear of all encumbrances except for a 2% net smelter returns royalty (the “Royalty”) to be retained by the Vendor, of which one-half may be acquired by Canada One at any time through a one-time cash payment of $1,000,000 to the Vendor.
Good Standing of 100% Option
To maintain the 100% Option in good standing, Canada One must:
(a) pay an additional $500,000 cash (total: $730,000) to the Vendor or issue and deliver to the Vendor such additional number of common shares of the Company as is equal in value to $500,000 (total: $730,000), on or before the date that is three years from the closing;
(b) incur an additional $1,000,000 (total: $2,500,000) of Expenditures on the Properties on or before November 15, 2026; and
(c) grant to the Vendor the Royalty.
(the above being collectively referred to as the “100% Option Payments” and, individually, a “100% Option Payment”).
After the completion of the 100% Option Payments the Properties will be owned 100% by the Company subject to the Royalty and an ongoing annual advance royalty payment of $100,000 per year starting on the fourth anniversary of closing and running until a production decision is announced.
The form of payment of the share or cash payments will be at the discretion of the Company if the closing price of the shares five business days before the applicable payment date is equal to or above $0.25, and the form of payment of the shares or cash payments will be at the discretion of the Vendor if the closing price of the shares five business days before the Anniversary Date is below $0.25. In each case, the applicable deemed issue price will be determined based on the closing price of the common shares of the Company on the TSX Venture Exchange on the date which is five business days prior to each Anniversary Date, subject to a minimum deemed issue price of $0.05 per share. All shares issued to the Vendor will be subject to a statutory hold period in accordance with applicable securities laws.
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.
The technical information contained in this news release has been reviewed and approved by Freeman Smith, P.Geo., a Qualified Person for the purposes of National Instrument 43-101.
For further information, interested parties are encouraged to visit the Company’s website at Candaonemining.com, or contact the Company by email at
On behalf of the Board of Directors of
CANADA ONE MINING CORP.
President and Chief Executive Officer
This press release includes certain "forward-looking information" and "forward-looking statements" (collectively "forward-looking statements") within the meaning of applicable Canadian securities legislation. All statements, other than statements of historical fact, included herein, without limitation, statements relating to the future operating or financial performance of the Company, are forward looking statements. Forward-looking statements are frequently, but not always, identified by words such as "expects", "anticipates", "believes", "intends", "estimates", "potential", "possible", and similar expressions, or statements that events, conditions, or results "will", "may", "could", or "should" occur or be achieved. Forward-looking statements in this press release relate to, among other things: statements relating to the completion of the Transaction and receipt of any required regulatory approvals. Actual future results may differ materially. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Forward looking statements reflect the beliefs, opinions and projections on the date the statements are made and are based upon a number of assumptions and estimates that, while considered reasonable by the respective parties, are inherently subject to significant business, technical, economic, and competitive uncertainties and contingencies. Many factors, both known and unknown, could cause actual results, performance or achievements to be materially different from the results, performance or achievements that are or may be expressed or implied by such forward-looking statements and the parties have made assumptions and estimates based on or related to many of these factors. Such factors include, without limitation: the timing, completion and delivery of the referenced assessments and analysis. Readers should not place undue reliance on the forward-looking statements and information contained in this news release concerning these times. Except as required by law, the Company does not assume any obligation to update the forward-looking statements of beliefs, opinions, projections, or other factors, should they change, except as required by law.
TSX Venture Exchange Disclaimer
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.
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