Allied Copper Signs Option Agreement To Acquire 100% of Klondike Property, CO, USA
VANCOUVER, British Columbia, Dec. 07, 2021 (GLOBE NEWSWIRE) -- Allied Copper Corp. (TSX-V: CPR, OTCQB: CPRRF) (the “Company” or “Allied Copper”), is pleased to announce the optioning of the
Klondike Property (“Klondike”), located in Colorado, United States. The Klondike Property consists of 76 unpatented mining claims, a State of Colorado Exploration Permit and an exclusive right to a
Warner Uhl Executive Chairman Allied Copper stated, “We are focused in finding opportunities to complement our existing SK Property (“SK”) with attractive assets in the Western United States. Klondike, together with SK both have the potential to become strategically located producing copper mines. It is our plan to drill prospective targets at each property in H1 2022 and then develop utilising our significant treasury raised in 2021. The Allied management team has a track record of taking an asset into production and in replicating this at our portfolio of assets, we hope to be able to meet the anticipated copper shortage with these properties. We are extremely excited to be adding an asset that shows such promise and will continue to evaluate further strategically located assets.”
Klondike Property Option Agreement Highlights
- Allied Copper will incur an aggregate of CAD $4,750,000 in exploration expenditures on the property, with at least CAD $500,000 to be spent prior to the first anniversary of the closing date.
- Allied will issue 7,000,000 common shares and make an aggregate of CAD $400,000 in cash payments to the Alliance over a three-year period.
- Upon completion of these option agreement obligations, the Alliance will transfer 100% interest in the Klondike Property to Allied. Allied will also issue 3,000,000 warrants exercisable for a three-year term at a price equal to the 10-day VWAP of Allied’s common shares at the time of the issuance.
- The Alliance will retain a 2% net smelter royalty which is subject to a buy down provision where Allied may, at its discretion, repurchase half of the royalty for CAD $1,500,000 within 30 days of commercial production.
- If Allied Copper files on SEDAR an NI 43-101 technical report establishing the existence of a resource on any portion of the Klondike Property of at least 50,000,000
tonnes of either copper or copper equivalent at a minimum cut-off grade of 0.50% copper or copper equivalent and categorized as a combination of inferred resources, indicated resources and measured
resources, then Allied will also issue a further 3,000,000 warrants exercisable for a three year term at a price equal to the 10-day VWAP of Allied’s common shares at the time of the issuance.