Alpha Copper Announces Signing of Option Agreement, Unit Financing, Investor Relations Engagement and Stock Option Grant
Alpha Copper Announces Signing of Option Agreement, Unit Financing,
Investor Relations Engagement and Stock Option Grant
VANCOUVER, British Columbia, Jan. 14, 2022 -- Alpha Copper Corp. (the “Company”) (CSE: ALCU) is pleased to announce
that it has entered into an option agreement (the " Agreement ") with Northwest Copper Corp. (“ Northwest”) and Eastfield
Resources Corp. (“Eastfield”) whereby the Company was provided an option to acquire a 100% interest in the Okeover Copper
Project, located in British Columbia (the " Property").
The Property (copper-molybdenum) consists of 12 contiguous legacy and cell mineral claims located in the Vancouver Mining
Division of southwestern British Columbia, 25 kilometers north of Powell River and 145 kilometers northwest of Vancouver.
Collectively, the claims cover an area of approximately 4,614 hectares.
Pursuant to the Agreement, the Company may acquire up to a 100% interest in the Property by issuing common shares in the
capital of the Company (" Common Shares ") to Northwest and incurring certain expenditures on the Property, all as
summarized below:
(a) by issuing Common Shares to Northwest, as follows:
(i) Common Shares with a value of $250,000 on the effective date of the Agreement;
(ii) additional Common Shares with a value of $500,000, on or before the date which is twelve (12) months from the
effective date of the Agreement;
(iii) additional Common Shares with a value of $750,000, on or before the date which is twenty-four (24) months from
the effective date of the Agreement; and
(iv) additional Common Shares such that Northwest holds 10% of the Company’s issued and outstanding common
shares on the date prior to such issuance, on or before the date which is thirty-six (36) months from the effective
date of the Agreement;
(b) by incurring expenditures on the Property of not less than $5,000,000, as follows:
(i) $500,000, on or before the date which is twelve (12) months from the effective date of the Agreement;
(ii) an additional $1,500,000, on or before the date which is twenty-four (24) months from the effective date of the
Agreement; and
(iii) an additional $3,000,000, on or before the date which is thirty-six (36) months from the effective date of the
Agreement.
The Agreement also contains a provision, effective upon the Company acquiring a 100% interest in the Property, for a 2% net
smelter royalty in favour of Northwest. Half of the net smelter royalty, thereby reducing the net smelter royalty to 1%, can be
bought back by the Company paying the sum of $1,000,000 to Northwest at any time prior to commencing commercial
production on the Property. The Property is subject to an underlying 2.5% net smelter royalty which may be repurchased in its
entirety in consideration of $2,000,000 on commencing commercial production on the Property.
The Agreement, including all issuances of securities contemplated thereunder, is subject to the certain customary closing
conditions. All Common Shares to be issued in connection with the Agreement will be subject to a statutory hold period of four
months and a day from the date of issuance.
Financing
The Company is also pleased to announce that it intends to complete a non-brokered private placement (the “ Private
Placement ”) of flow-through units (each, an " FT Unit ") of the Company at $0.65 per FT Unit for gross proceeds of up to
$1,500,000 and non-flow-through units (each, an "NFT Unit") of the Company at $0.50 per NFT Unit for gross proceeds of up
to $6,000,000.
Each FT Unit will consist of one Common Share, issued on a flow-through basis pursuant the Income Tax Act (Canada), and
one common share purchase warrant (each, a " Warrant "). Each Warrant will be exercisable at $1.00 per share for a period of
two years from the date of issuance. Each NFT Unit will consist of one common share and one Warrant. All securities issued
under the Private Placement will be subject to a four-month and one-day statutory hold period.
Finder’s fees may be payable in accordance with the policies of the Canadian Securities Exchange. The Company intends to
use the gross proceeds of the Private Placement to fund certain of its obligations under the Agreement and for general
administrative and working capital purposes.
Investor Relations
The Company is also pleased to announce that is has engaged Invictus Investor Relations Inc., based out of Vancouver, BC, in
order to assist with the Company’s investor relations programs over the coming year. The engagement is for a period of one
year and carries a monthly fee of $7,500.
Stock Options
The Company announces that it has granted incentive stock options (" Options") to purchase a total of 1,900,000 Common
Shares at an exercise price of $0.60 per share to certain directors, officers, and employees of the Company in accordance
with the provisions of its stock option plan. The Options will expire two years from the date of grant.
ON BEHALF OF THE BOARD OF DIRECTORS
“Darryl Jones”
Darryl Jones
CEO and Director
604-788-9533
Further information about the Company is available under its profile on the SEDAR website, www.sedar.com.
Neither CSE Exchange nor its Regulation Services Provider (as that term is defined in the policies of the CSE Exchange)
accepts responsibility for the adequacy or accuracy of this release.
Statements included in this announcement, including statements concerning our plans, intentions and expectations, which are
not historical in nature are intended to be, and are hereby identified as, "forward ‐looking statements". Forward ‐looking
statements may be identified by words including "anticipates", "believes", "intends", "estimates", "expects" and similar
expressions. The Company cautions readers that forward ‐looking statements, including without limitation those relating to the
Company's future operations and business prospects, are subject to certain risks and uncertainties that could cause actual
results to differ materially from those indicated in the forward‐looking statements.