Copper Lake Provides Update ON Marshall Lake Project and Announces $500,000 Non-Brokered Private Placement
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News Release No: 19-01
COPPER LAKE PROVIDES UPDATE ON MARSHALL LAKE PROJECT
AND ANNOUNCES $500,000 NON-BROKERED PRIVATE PLACEMENT
March 19, 2019 - Toronto, ON - Copper Lake Resources Ltd. (TSX -V: CPL, Frankfurt: W0I)
("Copper Lake" or the "Company") is pl eased to provide an update on its high- grade VMS
copper, zinc, silver and gold Marshall Lake Project as well as recent and near -term corporate
activities.
Marshall Lake Project Update
The Company completed a drill program in 2018 that was designed to test three VTEM
conductors and other targets derived from a comprehensive compilation of historic data
undertaken between 2014 and 2017. A total of 14 holes for 2,868 m were completed (see News
Release 18-07 dated May 23, 2018).
The 2018 drilling serves to highlight potential of the Main Billiton zone which remains open
below 150 m depth, displays strong precious metals contents and demonstrates reasonable
continuity in 3D modelling of historic data.
The Company has now engaged Fladgate Exploration Consulting Corporation of Thunder Bay,
Ontario to prepare a comprehensive 3D geological interpretation and model of its Marshall Lake
project which will incorporate all recent drilling . The scope of work will include compiling the
recent drill data, constructing a 3D model, and preparing a report that will identify targets to drill
and expand existing resources.
“Development of a comprehensive 3D model of the high- grade zones will allow us to better
understand the property, and will be a significant step towards the development of a NI 43- 101
compliant resource at Marshall Lake. We are continuing to focus on the significant high- grade
copper and zinc zones, and are particularly encouraged by the high silver content, with all drill
holes being relatively shallow to date. This report should be completed within the next two
months, and will prepare us for the next stage of field work and drilling in the summer of 2019,”
commented Terry MacDonald, CEO.
Gary O’Connor, FAusIMM, is the qualified person as defined by National Instrument 43- 101
who is responsible for reviewing and approving the technical contents of this press release.
Financing
The Company wishes to announce that, subject to regulatory approval, the Company intends to
complete a non-brokered private placement (the “Offering”) for aggregate gross proceeds of up
to $500,000. The Offering will be comprised of up to 8,000,000 Flow -Through U nits (“FT
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Units”) at a price of $0.025 per FT Unit and 15,000,000 Non Flow-Through Units (“Units”) at a
price of $0.020 per Unit . Each FT Unit will consist of one flow -through common share and one
common share purchase warrant (a “Warrant”), with each Warrant being exercisable at $0.05 for
two years. Each Unit will c onsist of one non flow -through common chare and one full common
share purchase w arrant (a “Warrant”), with each Warrant being exercisable at $0.05 for two
years. The Offering is being made subject to the grant of a discretionary waiver of the TSX
Venture Exchange’s (“TSXV”) minimum $0.05 pricing requirement (the “Waiver”). The
Offering is not subject to any minimum aggregate subscription. Subject to certain limitations
discussed below, th e Offering is open to all existing shareholders of the Company as well as
pursuant to other available prospectus exemptions. The Offering is subject to TSXV final
acceptance.
Assuming the Offering is fully subscribed, the Company intends to allocate the p roceeds as
follows: approximately $200,000 for current liabilities, $100,000 for general working capital
purposes, and $200,000 for qualifying Canadian exploration expenditures on its Marshall Lake
project.
Although the Company intends to use the proceeds of the Offering as described above, the actual
allocation of net proceeds may vary from the uses set forth above, depending on future
operations or unforeseen events or opportunities. If the Offering is not fully subscribed, the
Company will apply the pr oceeds of the Offering to the above uses in priority and in such
proportions as the board of directors of the Company determine is in the best interests of the
Company.
Depending on demand and regulatory requirements, a portion of the Offering may be made in
accordance with the provisions of the existing shareholder exemption (the “Existing Shareholder
Exemption”) pursuant to BC Instrument 45-534. In addition to conducting the Offering pursuant
to the Existing Shareholder Exemption, the Offering will also be conducted among close
personal friends and business associates of directors and officers of the Company.
The Company has set March 29, 2019 as the record date (the “Record Date”) for the purpose of
determining shareholders entitled to purchase Units. T he aggregate acquisition cost to a
subscriber under the Existing Shareholder Exemption cannot exceed $15,000 unless the
subscriber has obtained advice from a registered investment dealer regarding the suitability of
the investment.
If subscriptions received for the Offering based on all available exemptions exceed the maximum
Offering amount of $500,000, subscriptions will be accepted at the discretion of the Company on
a pro rata basis, such that it is possible that a subscription received from a sharehold er may not
be accepted by the Company if the Offering is over -subscribed. In accordance with the Existing
Shareholder Exemption, the Company confirms there is no material fact or material change
related to the Company which has not been generally disclosed.
Existing shareholders of the Company are directed to contact the Company for further
information concerning subscriptions for Shares pursuant to the Existing Shareholder
Exemption, as follows:
Contact person: Terrence MacDonald
Telephone: 416-561-3626
Email: [email protected]
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Closing of the Offering is anticipated to occu r on or before April 10, 2019, and is subject to
receipt of acceptance by the TSX Venture Exchange. All securities issuable will be subject to a
four-month hold period following the closing of the Offering . A finder’s fees of cash, shares or
finder’s warrants, or a combination thereof, may be paid to eligible finders with respect to any
portion of the Offering that is not subscribed by existing shareholders.
Director Change
The Company also announces that Edward Yurkowski has resigned as a director of Copper Lake
effective immediately. Mr. Yurkowski has been a director of the Company since 2009 and
served as CEO from 2014 to 2015. The Company thanks Mr. Yur kowski for his contributions
and support and wishes him well in his retirement.
About Copper Lake Resources
Copper Lake Resources Ltd. is a publicly traded Canadian company currently focused on
advancing properties located in Ontario, Canada:
The Marshall L ake high- grade VMS copper, zinc, silver and gold property, just north of
Geraldton, Ontario, is accessible by all-season road. CPL has an option to increase its interest to
87.5% from its current 75% interest.
The Norton Lake nickel, copper, cobalt, PGM property (71.41%), located in the southern Ring of
Fire area, is approximately 100 km north of the Marshall Lake Property, and has a NI 43- 101
compliant measured and indicated resource of 2.26 million tonnes @ 0.67% Ni, 0.61% Cu,
0.03% Co and 0.46 g/t Pd.
The Company also has an option agreement to acquire up to 100% of four separate Ontario
properties in the Kenora and Patricia mining belt: Queen Alexandra Gold Property, the Mine
Lake Gold Property, the Grand Chibougamau Gold Property and the Centrefire -Redhat Gold-
Copper Property.
On behalf of the Board of Directors,
Copper Lake Resources Ltd. CHF Capital Markets
Terry MacDonald, CEO Cathy Hume, CEO
(416) 561-3626 (416) 868-1079 x 231
[email protected] [email protected]
www.copperlakeresources.com
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.