Coast Copper Closes Non-Brokered Financing of $525,000 /NOT FOR DISTRIBUTION TO
Coast Copper Closes Non-Brokered Financing
of $525,000
/NOT FOR DISTRIBUTION TO
UNITED STATES
NEWSWIRE SERVICES OR FOR
DISSEMINATION IN
THE UNITED STATES
./
TSX.V: COCO
VANCOUVER, BC
,
May 16, 2024
/CNW/ -
Coast Copper Corp. ("Coast Copper" or the
"Company")
(TSXV: COCO) is pleased to announce it has closed its previously announced non-
brokered private placement (see news release dated
May 8, 2024
), issuing 8,750,000 units
("
Units
") at an issue price of
$0.06
per Unit for gross proceeds of
$525,000
(the "
Offering
").
Each Unit will consist of one common share of Coast Copper and one non-transferable common
share purchase warrant, with each warrant entitling the holder to acquire an additional common
share of the Company at an exercise price of
$0.12
per share with an expiry date ("
Expiry Date
") of
36 months from completion of the Offering (the "
Closing Date
").
Coast Copper would like to highlight that as a result of the Company selling its 100% interest in the
Gin, Bonanza and
Eldorado
properties (collectively, the "
Red Chris Properties
") to Skeena
Resources Limited ("
Skeena
") in
October 2022
for an aggregate purchase price of
$3,000,000
in
cash and shares, this is the first financing the Company has undertaken since
September 2022
. The
Company has been able to move its projects forward systematically and at low cost with minimal
dilution over the last 18 months and is positioning itself for a market recovery. The Company will
continue to receive the final
$1,000,000
in cash and shares from Skeena over the next 12 months.
Tim Thiessen
, Coast Copper CFO comments
:
"As many of our owners and stakeholders are
already aware, we have been extremely prudent with the proceeds from our Red Chris Properties
sale to Skeena in 2022. We still have over 40,000 common shares of Skeena on hand plus
another
$1,000,000
in receivables pursuant to the sale. The overall market appears to be on the
cusp of revaluing copper-focused assets like our Empire Mine property which includes Benson
Mine, a former producing copper mine operated by Cominco from 1968 to 1972, which returned
head grades averaging 1.9% copper and 1.8 grams per tonne gold (in 1,196,117 tonnes) in
massive sulphide zones up to 30 metres thick
¹ ²
. Insiders and close associates with a long-term
outlook now hold approximately 47.3% of the Company on an undiluted basis and we are excited
to continue creating value for our shareholders."
Two directors and one officer of the Company (the "
Insiders
") participated in the Offering for an
aggregate of 1,800,000 Units, representing 20.6% of the Offering. The participation by the Insiders
in the Offering is considered to be a related-party transaction as defined under Multilateral
Instrument 61-101 ("
MI 61-101
"). The transaction is exempt from the formal valuation and minority
shareholder approval requirements of MI 61-101, as neither the fair market value of the securities
being issued nor the consideration being paid exceeds 25% of the Company's market capitalization.
Following the Offering, the Company's CEO
Adam Travis
will own or control, directly and indirectly,
securities representing 9,009,833 common shares of the Company on an undiluted basis, and
13,453,166 on a partially diluted basis, representing approximately 12.25% and 17.25% of the
Company's issued and outstanding shares, respectively. As required for the purposes of National
Instrument ("
NI
") 62-103, Mr. Travis has filed an early warning report ("
EWR
"), completed filings on
SEDI and the Company has issued this news release to announce that he has increased his position
by more than 2%, on a partially diluted basis, since the filing of his last EWR on
September 28,
2022
. Mr. Travis acquired these shares for the purposes of an investment and depending on market
and other conditions, Mr. Travis may from time to time in the future increase or decrease his
ownership, control or direction over securities of the Company, through market transactions, private
agreements, or otherwise.
In satisfaction of the requirements of TSX-V Policy 4.1 – Private Placements, TSX-V Policy 5.9 –
Protection of Minority Securityholders in Special Transactions, MI 61-101 – Protection of Minority
Security Holders in Special Transactions, NI 51-102 – Continuous Disclosure Obligations, NI 62-104
– Take-Over Bids and Issuer Bids, and NI 62-103 – The Early Warning System and Related Take-
Over Bid and Insider Reporting Issues, a material change report respecting the acquisition of
securities by the related party transactions and an early warning report respecting Mr. Travis'
increased holdings of the Company's capital structure will be filed under the Company's SEDAR
Profile at
www.sedarplus.com
.
As noted in its news release dated
May 8, 2024
, the net proceeds raised from the issuance of the
Units will be used:
to make the final payment due
September 2024
in relation to the Company's optioned Empire
Mine property mineral claims;
to conduct field work on the newly acquired Sully property located adjacent to the PJX
Resources Inc.'s
Dewdney Trail
property³ (see news release dated
February 12, 2024
);
to continue Coast Copper's strategic mineral property acquisition program; and
for working capital and general corporate purposes.
Finders acting in connection with the Offering received aggregate cash fees of
$8,820
and a total of
147,000 finders' warrants, with the warrants having the same terms as those in the Offering.
The Offering remains subject to customary closing conditions including the approval of the TSX
Venture Exchange. All securities issued in the Offering will be subject to a statutory hold period of
four months and a day from the Closing Date.
This news release does not constitute an offer to sell or a solicitation of an offer to sell any of the
securities in
the United States
. The securities have not been and will not be registered under the
United States Securities Act of 1933, as amended (the "
U.S. Securities Act
") or any state
securities laws and may not be offered or sold within
the United States
or to U.S. Persons unless
registered under the U.S. Securities Act and applicable state securities laws or an exemption from
such registration is available.
Qualified Persons
The technical information contained in this news release has been prepared, reviewed, and
approved by
Wade Barnes
, P.Geo. (BC), Coast Copper's geological consultant and a Qualified
Person ("
QP
") within the context of the Canadian Securities Administrators' NI 43-101; Standards of
Disclosure for Mineral Projects.
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 Sully property located in southeastern BC, Knob Hill NW property located on
northern Vancouver Island, its Home Brew property in central BC, and its
Scottie West
property
located in the "Golden Triangle" of northern 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
Cautionary Notes
¹ Historical information, maps or figures contained in this release regarding Coast Copper's Empire
Mine Property or adjacent properties cannot be relied upon as the Company's QP, as defined under
NI-43-101 has not prepared nor verified the historical information.
²
Minister of Mines and Petroleum Resources Annual Report 1968 and Geology, Exploration and
Mining in
British Columbia
reports 1969-1972. Production Reports on the Old Sport/
Benson Lake
Mine
.
³ This news release may contain information about adjacent properties on which Coast Copper has
no right to explore or mine. Investors are cautioned that mineral deposits on adjacent properties are
not indicative of mineral deposits on the Company's properties.
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 proposed Transaction, private placement, board and management
changes,
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 a guarantee 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.
View original content:
http://www.newswire.ca/en/releases/archive/May2024/16/c2302.html
%SEDAR: 00032945E
For further information:
Adam Travis, CEO, Coast Copper Corp., 409 Granville Street, Suite 904,
Vancouver, B.C. V6C 1T2, Canada, P: 877-578-9563, E: [email protected], NR24-04
CO: Coast Copper Corp.
CNW 14:00e 16-MAY-24