Canada One Acquires Option to Earn up to 100% Interest IN the Abitibi East Critical Minerals Project, Northeast of Timmins, Ontario
#250 – 750 West Pender St.
Vancouver, British Columbia, V6C 2T7
CANADA ONE ACQUIRES OPTION TO EARN UP TO 100% INTEREST IN THE ABITIBI
EAST CRITICAL MINERALS PROJECT, NORTHEAST OF TIMMINS, ONTARIO
Vancouver, B.C., 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 16 th, 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
Poly-metallic critical mineral property with additional base, precious metal potential
(Ni, Cu, Pt, Pd, Au, Zn, Ag, and V)
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
Nellie Highlights
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
Transaction Terms
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.
Qualified Person
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.
Contact Us
For further information, interested parties are encouraged to visit the Company’s website at
Candaonemining.com, or contact the Company by email at [email protected], 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
Forward-Looking Statements
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.