Cornerstone Signs LOI to Acquire Topley Property
TSX-V: CCC
| Cornerstone Signs LOI to Acquire Topley Property | |||
|---|---|---|---|
| April 28, 2016 - Vancouver, British Columbia –Cornerstone Metals Inc. (TSX-V – CCC) | |||
| (“Cornerstone” or the “Company”) is pleased to announce that it has signed a non-binding | |||
| Letter of Intent ("LOI") with private interests (“Owners”) outlining the terms of a transaction. | |||
| The Transaction is proposed to be implemented through an Option Agreement, pursuant to which | |||
| the Owners will grant to CCC an option to acquire from them a 100% undivided interest in and | |||
| to the Topley Property (“Topley”), subject to a 3% NSR. The LOI is subject to due diligence, | |||
| which the Company will commence immediately, while it proceeds to finalize a definitive option | |||
| agreement to be executed upon completion of successful due diligence. | |||
| The Topley Property, located 60 kilometres east-southeast of Smithers, B.C., is a precious and | |||
| base metal mineral prospect known as Topley-Richfield (Au-Ag-Pb-Zn-Cu) with significant | |||
| underground development from 2 levels completed from 1927 to 1929 and significant more | |||
| recent evaluations occurring from 1979 to 2007 including over 8,000m of drilling. | |||
| Mineralization is structurally controlled and occurs in two quartz-carbonate alteration zones. | |||
| Pursuant to the terms of the LOI, the Option will be exercisable upon CCC paying to the Owners | |||
| an aggregate of $200,000 cash and issuing an aggregate of 1,100,000 common shares of CCC | |||
| according to the following tabled schedule: | |||
| Cash Payment | Share Issuance | ||
| On Signing the Option Agreement | $20,000 | 250,000 | |
| On 1st Anniversary | $20,000 | 250,000 | |
| On 2nd Anniversary | $30,000 | 150,000 | |
| On 3rd Anniversary | $40,000 | 150,000 | |
| On 4th Anniversary | $45,000 | 150,000 | |
| On 5th Anniversary | $45,000 | 150,000 | |
| Additionally, commencing on the sixth anniversary date, and every subsequent anniversary date, | |||
| CCC will pay to the Owners $20,000 cash per year as an advanced NSR payment until | |||
| commercial production begins on the Topley Property. The 3% NSR may be purchased from the | |||
| Owners for $1 million per each 1% NSR. The advanced NSR payments will be credited towards | |||
| an NSR buyout. On commercial production, bonus CCC shares of 500,000 would be issued to | |||
| the Owners. | |||
| The execution of the Option Agreement will be subject to standard closing conditions for | |||
| transactions of this nature, including but not limited to board and regulatory approvals. |
About Cornerstone Metals Inc.
Cornerstone’s objective is to advance exploration / development stage copper and precious metals properties to production in the Americas. The Company’s Management and Board Core Competence is in exploration, permitting, development, construction, and operation of mining projects.
Cornerstone owns 100% (subject to 1.5% NSR) of the West Jerome property, near Jerome, Arizona, on the west side of Freeport McMoRan patented lands. The property, in a Volcanogenic Massive Sulfide camp, is a high-grade, massive sulfide target located 2.4 km south of the pastproducing United Verde (32 million tons grading 4.4% copper, 1.5 oz/t silver and 0.04 oz/t gold). The West Jerome property has attractive untested drill targets.
ON BEHALF OF CORNERSTONE METALS INC.
per:
“Paul Cowley”
CEO & President
For further information, please contact:
Paul Cowley
Tel: 604-340-7711 Email: [email protected]
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Paul S. Cowley, P.Geo., President, CEO and director of the Company, is the Qualified Person as defined in NI43-101, who has reviewed and approved the technical content of this release.
Forward-looking information
All statements included in this press release that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are forward-looking statements. These forward- looking statements involve numerous assumptions made by the Company based on its experience, perception of historical trends, current conditions, expected future developments and other factors it believes are appropriate in the circumstances. In addition, these statements involve substantial known and unknown risks and uncertainties that contribute to the possibility that the predictions, forecasts, projections and other forward-looking statements will prove inaccurate, certain of which are beyond the Company’s control. There can be no assurance that any forward- looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Except as required by law, Cornerstone does not intend to revise or update these forward-looking statements after the date hereof or to revise them to reflect the occurrence of future unanticipated events.