Together with other claims owned by Superior Copper, the Company now retains a 100% interest in 101 unpatented mining claims covering 120 square kilometres, some of which are subject to underlying royalties.
In consideration for FMEL’s remaining 50% interest in the property, which comprises forty-nine (49) unpatented mining claims, Superior Copper will:
Issue 6,956,044 million shares of Superior Copper, with one third issued upon closing and one third issued on each of the first and second anniversaries of closing.
Pay $100,000 cash to FMEL upon closing.
Pay FMEL a sum of cash equal to 2% of exploration expenses incurred in the next seventeen months after closing to a maximum of $25,000.
"It has always been our view that the Coppercorp Project is one of the best discovery-focused exploration projects in Canada and despite difficult equity markets for junior exploration companies, the reorganization of ownership will allow the Company to maximize the value of these properties", said Brian Howlett, President and CFO of Superior Copper.
Pursuant to the acquisition, Superior Copper and FMEL have agreed to terminate the option and joint venture agreement regarding the property for no further consideration and have released each other from all obligations, claims and proceedings thereunder. The acquisition is subject to regulatory approval. Shares issued pursuant to this acquisition will have a statutory resale restriction of four months and one day.
Superior Copper is pleased to announce that it intends to complete a best efforts non-brokered private placement financing of up to 20.0 million units ("Units") at a price of $0.05 per Unit for gross proceeds of up to $1.0 million (the "Offering").
Each Unit will be comprised of one common share and one common share purchase warrant ("Warrant"), with each Warrant being exercisable for one common share of the Corporation at an exercise price of $0.06 for a period of twenty-four months following the closing date of the financing. The proceeds of the Offering will be used to fund the repayment of a promissory note used for bridge loan financing to complete the acquisition, for exploration, property acquisition, and general working capital purposes. The private placement is subject to regulatory approval. Securities issued pursuant to the private placement will have a statutory resale restriction of four months and one day.
The company has received a $100,000 interest free and unsecured promissory note (the "Note") from an arm’s length party. The proceeds of the Note will be as bridge loan financing and applied to complete the acquisition of the Coppercorp Project. The proceeds of the Note must be returned if the acquisition of the Coppercorp Project is not completed within thirty days, and if the acquisition is completed within this time period, the Note is due and payable within ninety days of demand. As disclosed above, the Note will be repaid from the proceeds of the private placement, and the proceeds of the financing are necessary to complete the acquisition and fund exploration.
