Copper Creek Gold Corp.: Corporate Update
Vancouver - Copper Creek Gold Corp. (the “Company”) is pleased to provide an update on its corporate affairs. The Company announces that it has entered into a nonbinding letter of intent (the “LOI”) with Minera Bonanza Peru S.A. (“Minera Bonanza”) pursuant to which the Company would acquire, pursuant to a share purchase agreement (the “Transaction”) with Minera Bonanza and certain shareholders of Minera Bonanza (the “MB Shareholders”) a minimum of 19,300,000 shares of the issued shares of Minera Bonanza (the “MB Shares”). The MB Shares represent approximately 96.5% of the issued and outstanding shares of Minera Bonanza. The Company will issue common shares of the Company to the MB Shareholders on the basis of one common share for each MB Share.
Minera Bonanza owns the Colqui Project located in the Huanza district of Peru, 85 kilometers northeast of Lima in the Province of Huarochiri. The Project comprises an area of approximately 9,700 hectares corresponding to a surface rights agreement and upon which Minera Bonanza owns a 99% interest in 6 contiguous mining concessions and a 100% right to reuse certain tailings from historical mining operations at the Colqui mine.
The LOI provides that the Company will be responsible for covering certain legal and accounting fees up to $50,000 on behalf of Minera Bonanza with respect to any requirements of the TSX Venture Exchange (the “Exchange”) relating to the Transaction or as may be required pursuant to applicable securities laws. The LOI also provides that the Company is to fund Minera Bonanza for up to USD $2,000,000 (the “Financing”) to bring the tailings project into production within eighteen (18) months of closing the Transaction (the “Financing Deadline”). If the Company is unable to complete the Financing by the Financing Deadline, each MB Shareholder will receive, as additional consideration, one share purchase warrant of the Company for each MB Share previously held by the MB Shareholder (the “Penalty Warrants”). The Penalty Warrants will be exercisable at the Market Price (as defined by the rules of the Exchange) for a period of two years from the date of issue.
The Company has paid, upon signing of the LOI, US$10,000 to Minera Bonanza to secure a 90 day exclusivity period during which Minera Bonanza has agreed that it will not accept, solicit, initiate or encourage proposals or offers from any party that is competitive in any way to the substance of the Transaction.
The parties to the LOI have agreed to use their best efforts to settle the terms of a definitive agreement setting out the terms of the proposed acquisition of the MB Shares by the Company on or before July 31, 2017. The Transaction will be subject to, among other things, receipt by both parties of satisfactory due diligence results and the approval of the Exchange.
The Company also announces that it has set August 9, 2017 as the date for its Annual General Meeting of shareholders.
About Copper Creek Gold:
The Company is a Canadian-based mineral exploration company which has been active in the resource sector in British Columbia and elsewhere in Western Canada.
ON BEHALF OF THE BOARD
Gordon Jung
Chief Executive Officer
FOR FURTHER INFORMATION CONTACT
Gordon Jung
Chief Executive
Officer Tel: 604-786-3255
Email: gordiejung@gmail.com
Neither the TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada (IIROC) accepts responsibility for the adequacy or accuracy of this release.
This news release includes certain forward-looking statements or information. All statements other than statements of historical fact included in this release, including, without limitation, statements regarding future plans and objectives of the Company are forward looking-statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company’s plans or expectations include availability of capital and financing, general economic, market or business conditions, regulatory changes, timelines of government or regulatory approvals and other risks inherent in the oil and gas and mineral exploration industries and from the time to time in the filings made by the Company. The Company makes all reasonable efforts to update its corporate material, documentation and forward-looking information on a timely basis.