Alpha Copper Announces Signing of Option Agreement, Funding of Units, Engagement of Investor Relations and Grant of Stock Options

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VANCOUVER, British Columbia, Jan. 14, 2022 (GLOBE NEWSWIRE) — Alpha Copper Corp. (the “Society”) (CSE: ALCU) is pleased to announce that it has entered into an option agreement (the “Agreement“) with Northwest Copper Corp. (“North West”) and Eastfield Resources Corp. (“Eastfield”) whereby the Company obtained 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 cellular mining claims located in the Vancouver Mining Division in southwestern British Columbia, 25 kilometers north of Powell River and 145 kilometers north -west 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 (“Ordinary actions“) to Northwest and incurring certain expenses on the property, all of which are 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, no later than the date that is twelve (12) months from the effective date of the agreement;

(iii)

additional common shares with a value of $750,000, no later than the date that is twenty-four (24) months from the effective date of the agreement; and

(iv)

additional common shares such that Northwest holds 10% of the issued and outstanding common shares of the Corporation on the date preceding such issuance, no later than the date that is thirty-six (36) months from the date of entry into force of the agreement;

(b)

by incurring expenditures on the property of at least $5,000,000, as follows:

(I)

$500,000, no later than the date which is twelve (12) months from the effective date of the Agreement;

(ii)

an additional amount of $1,500,000, no later than the date that is twenty-four (24) months from the effective date of the agreement; and

(iii)

an additional amount of $3,000,000, no later than the date corresponding to thirty-six (36) months from the effective date of the Agreement.

The agreement also contains a provision, upon the Corporation’s acquisition of a 100% interest in the property, of a 2% net smelter royalty in favor of Northwest. Half of the net smelter royalty, thereby reducing the net smelter royalty to 1%, may be repurchased by the Company by paying $1,000,000 to Northwest at any time prior to the commencement of commercial production on the property . The property is subject to an underlying 2.5% net smelter royalty which can be redeemed in full for $2,000,000 upon commencement of commercial production on the property.

The Agreement, including all securities issuances contemplated thereunder, is subject to certain customary closing conditions. All common shares to be issued pursuant to the agreement will be subject to a statutory hold period of four months and one day from the date of issue.

Funding

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, a “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, a “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 under the Income Tax Act (Canada), and one common share purchase warrant (each, a “To guarantee“). Each warrant will be exercisable at $1.00 per share for a period of two years from the date of issue. Each NFT unit will consist of one common share and one warrant. All securities issued pursuant to the private placement will be subject to a statutory – one month and one day 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 it has engaged Invictus Investor Relations Inc., based in Vancouver, British Columbia, to assist with the company’s investor relations programs during the year. future. The commitment is for one year and carries a monthly fee of $7,500.

stock options

The Company announces that it has granted incentive stock options (“Choice“) to purchase an aggregate of 1,900,000 common shares at an exercise price of $0.60 per share from certain directors, officers and employees of the Company pursuant to 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

Daryl Jones

Daryl 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 CSE Exchange) accepts responsibility for the adequacy or accuracy of this release.

Statements included in this announcement, including statements regarding 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 can be identified by words such as “anticipates”, “believes”, “intends”, “estimates”, “expects” and similar expressions. The Company cautions readers that forward-looking statements, including, without limitation, those relating to the future operations and business prospects of the Company, are subject to certain risks and uncertainties that could cause actual results to differ materially. from those set forth in the forward-looking statements.

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