VANCOUVER, BRITISH COLUMBIA–(Marketwired – Dec. 2, 2015) – Lorraine Copper Corp. (“Lorraine Copper” or “the Company”) (TSX VENTURE:LLC) is pleased to announce that it has entered into an agreement with Teck Resources Limited (“Teck”) (TSX: TCK.A, TCK.B; NYSE: TCK) to acquire Teck’s 51% joint venture interest in the Lorraine/Jan Tam Misty (“Lorraine”) project. Lorraine Copper will hold a 100% undivided interest in the project, upon fulfilment of certain closing conditions.
Lorraine Copper’s president and CEO, Bill Morton, commented, “The acquisition of Teck’s 51% interest in the Lorraine/Jan Tam Misty property will give us a 100% interest and control over the future direction of the project. The acquisition provides Lorraine Copper with long-term exposure to metal prices and excellent exploration and development upside given the number of targets and the potential to advance the project quickly. We would like to thank Teck for their exceptional work on the property in previous years and are pleased to have them as a significant shareholder of Lorraine Copper.”
Under the terms of the purchase agreement dated November 26, 2015, which is subject to TSX Venture Exchange approval, Lorraine Copper shareholder approval and certain other closing conditions listed below, Lorraine Copper will acquire Teck’s 51% joint venture interest in the Lorraine project in consideration for:
- Issuance of approximately 35.6 million shares to Teck (determined on a pre-closing; pre-share consolidation basis).
- Assignment to Teck of all existing Lorraine Copper royalty buyback and buy-down rights.
- Teck retaining a 1% NSR royalty on Lorraine project claims free of any underlying royalties.
Closing conditions for Lorraine Copper include the following:
- The settlement of a debt owed by Lorraine Copper to Eastfield Resources Ltd. of $114,128 by issuing Lorraine Copper shares at a deemed price of $0.05 per share for 2,282,560 shares.
- Completion of an equity financing of not less than $2,000,000 by February 28, 2016 which includes a minimum of 15% by proceeds of non-flow-through shares.
- A share consolidation on a ratio of two existing shares for one new share.
Lorraine Copper will have approximately 56.7 million shares issued and outstanding after completion of the transactions described above, and Teck is expected to hold approximately 18.8 million shares immediately following the closing. Lorraine Copper currently has 45,665,002 shares issued and outstanding.
In June 2005, Teck optioned the Lorraine project from predecessor companies Eastfield Resources Ltd. and Lysander Minerals Corp. who later merged their respective interests in the project to create Lorraine Copper in 2008. Teck incurred expenditures of $9.0 million to earn a 51% joint venture interest in the project. Lorraine is located in north central British Columbia approximately 170 km to the northwest of the regional centre of Fort St. James. The project, which covers an area of approximately 39,046 ha, is accessed by logging haul roads that connect to the communities of MacKenzie and Fort St. James and lies approximately 40 km from the Kemess power line.
Mineralization at Lorraine is copper and gold-rich and has many attributes common to other alkalic porphyries in British Columbia including Mount Polley and Galore Creek. Drilling at Lorraine, up to and including that completed by Teck in 2008, totals 223 holes (38,016 metres). A NI 43-101 resource calculation, based on historic drill results, was completed on the Main Zone-Bishop Zone area by Giroux Consultants of Vancouver, BC in 2012 (see news release of May 30, 2012). The resource estimate (at a cutoff grade of 0.20% copper) is 6.42 million tonnes (indicated) grading 0.61% copper and 0.23 g/t gold and 28.82 million tonnes (inferred) grading 0.45% copper and 0.19 g/t gold. Several mineralized areas exist outside of the 2012 resource.
J.W. Morton, P.Geo., is the qualified person, as defined by NI 43-101, who has reviewed and takes responsibility for this news release.
J.W. Morton, P.Geo., President and CEO
Lorraine Copper Corp.
About Lorraine Copper Lorraine Copper holds is a Canadian mineral exploration company that holds a 49% interest in the Lorraine property. Lorraine Copper has entered into a purchase agreement with Teck to acquire Teck’s 51% interest in the property. For more information please visit the Company’s website at www.lorrainecopper.com.
The TSX – Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
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