FOR IMMEDIATE RELEASE…Vancouver, British Columbia: World Copper Ltd. (“World Copper” or the “Company“; TSXV: WCU, OTCQB: WCUFF, FSE: 7LY0) announces that the Company has entered into a non-binding letter of intent (the “LOI“) to enter into a property option agreement whereby World Copper would be granted the option to acquire (the “Option“) a 100% interest in the mineral exploitation concessions comprising the Cristal project located in Northern Chile (the “Cristal Project“).
Cristal Project Description
The Cristal Project is a porphyry copper target located in Northern Chile, near the Peru/Chile border, and comprises 9 km2 of exploitation concessions. The Cristal Project was the subject of a technical report prepared pursuant to National Instrument 43-101 Standard of Disclosure for Mineral Projects (“NI 43-101“) entitled “National Instrument 43 101 Technical Report for the Cristal Copper Property, Province of Arica, XV Region of Arica and Parinacota, Chile“, dated effective February 28, 2018, prepared by Thomas A. Henricksen and filed on New Energy Metals Corp.’s SEDAR profile on March 29, 2018.
Option Terms
The terms of the LOI provide that, subject to the completion of certain conditions, including TSX Venture Exchange (“TSXV“) acceptance and entry into a definitive property option agreement (the “Definitive Agreement“) with the vendor of the Cristal Project (the “Vendor“), World Copper, or an affiliate nominated by World Copper, would be granted the Option, which may be exercised by World Copper issuing to the Vendor 500,000 common shares (each, a “Common Share“) upon the execution of the Definitive Agreement, and making cash payments to the Vendor in the aggregate amount of USD $350,000 as follows:
| Date | Amount (USD) |
| On or before the 12 month anniversary of the date of acceptance for filing of the Definitive Agreement by the TSXV (the “Effective Date“) | $50,000 |
| On or before the 24 month anniversary of the Effective Date | $100,000 |
| On or before the 36 month anniversary of the Effective Date | $200,000 |
| TOTAL: | $350,000 |
The terms of the LOI also provide that World Copper will be responsible for all exploration costs and activities during the Option period, and the payment by World Copper to the Vendor of USD $50,000 thirty days prior to the commencement of drilling on the Cristal Project. Other than the 500,000 Common Shares to be issued to the Vendor upon the execution of the Definitive Agreement, World Copper shall not be obligated to do any further act or acts, including any exploration or work on or with respect to the Cristal Project; provided that during the Option period, World Copper shall be responsible for keeping the Cristal Project in good standing.
Upon the exercise of the Option, World Copper shall grant the Vendor a 2% net smelter returns (“NSR“) royalty. World Copper shall have the right to purchase one half (1/2) of the royalty upon the payment to the Vendor of USD $2,000,000, in which case the royalty payable to the Vendor shall be reduced to 1.0%. In addition, there is also an existing 1% NSR royalty on the Cristal Project in favour of Condor Resources Inc. that can be repurchased in its entirety upon a payment of USD $1,000,000.
Figure 1. Approximate Location of Cristal Project.
Escalones Option Termination
The Company also announces that it has terminated its option to acquire the Escalones Project in Chile. The Escalones Project was subject to a now-terminated option agreement between an indirect, wholly owned subsidiary of the Company and a third-party vendor.
ABOUT WORLD COPPER LTD.
World Copper Ltd., headquartered in Vancouver, BC, is a Canadian resource company focused on the exploration and development of its copper porphyry projects. The Company is dedicated to sustainable practices and leveraging technology to develop safe and productive mining operations in stable, mining-friendly jurisdictions.
Detailed information is available at World Copper’s website at https://worldcopperltd.com, and for general Company updates you may follow us on our social media pages via Facebook, Twitter & LinkedIn.
On Behalf of the Board of Directors of
WORLD COPPER LTD.
“Gordon Neal”
Gordon Neal
President & Chief Executive Officer
For further information, or to schedule a Zoom meeting with Management, please contact:
Gordon Neal
Phone: 604-638-3287
Email: [email protected]
For all Investor Relations inquiries, please contact:
John Liviakis
Liviakis Financial Communications Inc.
Phone: 415-389-4670
For all Public Relations inquiries, please contact:
Nancy Thompson
Vorticom, Inc.
Office: 212-532-2208 | Mobile: 917-371-4053
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Neither TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts responsibility for the adequacy or accuracy of this news release.
Cautionary Note Regarding Forward-Looking Statements
This news release contains forward-looking statements and forward-looking information (collectively, “forward looking statements”) within the meaning of applicable Canadian and U.S. securities legislation. All statements, other than statements of historical fact, included herein including, without limitation, statements regarding the entry into of the Definitive Agreement, are forward-looking statements. Although the Company believes that such statements are reasonable, it can give no assurance that such expectations will prove to be correct. Forward-looking statements are typically identified by words such as: “believes”, “expects”, “anticipates”, “intends”, “estimates”, “plans”, “may”, “should”, “would”, “will”, “potential”, “scheduled” or variations of such words and phrases and similar expressions, which, by their nature, refer to future events or results that may, could, would, might or will occur or be taken or achieved. In making the forward-looking statements in this news release, World Copper has applied several material assumptions, including without limitation, market fundamentals will result in sustained copper demand and prices, the receipt of any necessary permits, licences and regulatory approvals in connection with the Option in a timely manner, the availability of financing on suitable terms for the continued operation of World Copper’s business and its ability to comply with environmental, health and safety laws.
Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to differ materially from any future results, performance or achievements expressed or implied by the forward-looking information. Such risks and other factors include, among others, requirements for additional capital, actual results of exploration activities, including on the Company’s projects, the estimation or realization of mineral reserves and mineral resources, future prices of copper, changes in general economic conditions, changes in the financial markets and in the demand and market price for commodities, lack of investor interest in future financings, accidents, labour disputes and other risks of the mining industry, delays in obtaining governmental approvals (including TSX Venture Exchange acceptance for filing of the Definitive Agreement), permits or financing or in the completion of other planned activities, risks relating to epidemics or pandemics, including impacts on the Company’s business, financial condition and results of operations, changes in laws, regulations and policies affecting mining operations, title disputes, the timing and possible outcome of any pending litigation, environmental issues and liabilities, as well as the risk factors described in the Company’s annual and quarterly management’s discussion and analysis and in other filings made by the Company with Canadian securities regulatory authorities under the Company’s profile at www.sedarplus.ca.
Readers are cautioned not to place undue reliance on forward-looking statements. The Company does not undertake any obligation to update any of the forward-looking statements in this news release or incorporated by reference herein, except as otherwise required by law.
