August 23, 2022 – Vancouver, Canada – Canada One Mining Corp. (the “Company” or “Canada One”) (TSXV: CONE) is pleased to announce that it has entered into an option agreement, dated effective August 17th, 2022 (the “Agreement”), pursuant to which the Company will acquire from an arm’s length third party, the right to earn a 90% interest, subject to a 2% net smelter returns royalty (the “Royalty”), in the Matabitchuan Cobalt Project (the “Project”), a 9,664 Hectare contiguous property located roughly 50 kilometres south of Cobalt, Ontario (the “Transaction”).
The Transaction represents a fundamental acquisition for the Company in accordance with the rules of the TSX Venture Exchange and will replace the proposed transaction involving Franelle Copper Project which had been previously identified by the Company. The Company is currently reviewing the Franelle Copper Project and establishing whether to proceed under renegotiated terms or terminate the agreement.
The Agreement
The Company can earn a 90% interest in the Project, subject to a 2% net smelter returns royalty (the “Royalty”) by meeting the following terms:
Issuing an aggregate of 4,000,000 in the common stock of the Company (the “Shares”), and $140,000 in cash payments and $400,000 in cash or Shares payments to the Optionor on or before the dates set out below:
- 500,000 Shares and $50,000 in cash within five Business Days after receipt of the approval of the TSX Venture Exchange for the Transaction (the “TSXV Approval”);
- an additional 750,000 Shares and $90,000 in cash on or before the first anniversary date of TSXV Approval;
- an additional 750,000 Shares and $100,000 on or before the second anniversary date of TSXV Approval as set out below:
- in Shares, if the Company’s cash balance is below $400,000 five business days before the second anniversary date or in cash, if the Company’s cash balance is above $400,000 five business days before the second anniversary date;
- an additional 1,000,000 Shares and $140,000 on or before the third anniversary date of TSXV Approval as set out below:
- in Shares, if the Company’s cash balance is below $400,000 five business days before the third anniversary date or in cash, if the Company’s cash balance is above $400,000 five business days before the third anniversary date; and
- an additional 1,000,000 Shares and $160,000 on or before the fourth anniversary date of TSXV Approval as set out below:
- in Shares, if the Company’s cash balance is below $400,000 five business days before the fourth anniversary date or in cash, if the Company’s cash balance is above $400,000 five business days before the fourth anniversary date.
Incurring $1,525,000 in exploration expenditures on the Property as follows:
- $125,000 in expenditures on or before May 15th, 2023;
- $250,000 in additional expenditures on or before May 15th, 2024;
- $300,000 in additional expenditures on or before May 15th, 2025;
- $350,000 in additional expenditures on or before May 15th, 2026; and
- $500,000 in additional expenditures on or before May 15th, 2027.
Following the exercise of the option, the Company will grant the Royalty to the vendor of the Project. The Company can purchase 50% (or 1%) of the Royalty at any time for a one-time payment of $500,000 in cash and $1,000,000 in Shares for a total value of $1,500,000.
Following the exercise of the option, the parties intend to negotiate the terms of a joint venture arrangement to advance development of the Property. Such arrangement is expected to include a mechanism by which expenditures on the Property will be funded on a pro rata basis, with interests diluted in the event a party elects not to fund; a mechanism for preparing and approving a budget and work program in respect of the Project; and the ongoing management of the joint venture.
Eldridge Pubelow Property
Concurrently with the entering into of the Agreement, the Company has also entered into an agreement with two arms-length parties to acquire a 100% interest in and to a series of mineral claims surrounded by the Project and commonly known as the Eldridge Pubelow Property (the “Eldridge Pubelow Property”). The Company can acquire the Eldridge Pubelow Property, subject a 2% net smelter returns royalty, by issue an aggregate of 800,000 Shares and paying $80,000 as follows:
- 250,000 Shares and $10,000 cash within five Business Days after receipt of the TSXV Approval;
- an additional 250,000 Shares and $20,000 cash on or before the first anniversary date of TSXV Approval; and
- an additional 300,000 Shares and $50,000 cash on or before the second anniversary date of TSXV Approval.
Following the exercise of the option, the Company will grant a net smelter returns royalty to the vendor of the Project. The Company can purchase 50% (or 1%) of the Royalty at any time for a one-time payment of cash totaling $1,000,000.
In the event the Company acquires the Eldridge Pubelow Property, and subsequently completes a resource estimate on the property, the vendors will be eligible to receive an additional bonus payment of $75,000 payable in Shares or cash.
No finders’ fees or commissions are payable in connection with completion of the Transaction or the acquisition of Eldridge Pubelow Property.
Private Placement
In connection with completion of the Transaction, it is contemplated that the Company will complete a non-brokered private placement to raise up to $1,750,000 of additional capital to satisfy obligations under the Agreement, extinguish debt and liabilities and to further develop the Project.
Further details of private placement will be announced at a later date.
Closing
Closing of the Transaction remains subject to the completion of a technical report in respect of the Project, completion of the Offering, and the approval of the TSX Venture Exchange. The Transaction cannot be completed until approval of the TSX Venture Exchange is received. Trading in the common shares of the Company is currently halted on the TSX Venture Exchange and is expected to remain halted pending completion of further filings with the TSX Venture Exchange.
Project Overview
The Matabitchuan Project (9,664 Ha) is located 50kms south of Cobalt, Ontario mining camp, a five-element (Co-Ni-Ag-Cu+/-Au ) vein style district which became one of the largest silver-producing areas in the world, eventually yielding a total of 460 million ounces (more than 13 million kilograms) of silver – over $20-billion worth at today’s silver prices. The district contains several known deposits, historically mined, which have been targeted for their cobalt potential.
Despite the Project’s proximity to this district and the mining towns of Temagami and Silver Centre (abandoned), it has received comparatively little geological or exploration attention over the years.
For further information, interested parties are encouraged to visit the Company’s profile on SEDAR (www.sedar.com) or contact the Company at
On behalf of the Board of Directors of
CANADA ONE MINING CORP.
Peter Berdusco
President and Chief Executive Officer
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release may contain certain “Forward-Looking Statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and applicable Canadian securities laws. When used in this news release, the words “anticipate”, “believe”, “estimate”, “expect”, “target, “plan”, “forecast”, “may”, “schedule” and other similar words or expressions identify forward-looking statements or information. These forward-looking statements or information may relate to future prices of commodities, accuracy of mineral or resource exploration activity, reserves or resources, regulatory or government requirements or approvals, the reliability of third party information, continued access to mineral properties or infrastructure, fluctuations in the market for gold, and other factors or information. Such statements represent the Company’s current views with respect to future events and are necessarily based upon a number of assumptions and estimates that, while considered reasonable by the Company, are inherently subject to significant business, economic, competitive, political and social risks, contingencies and uncertainties. Many factors, both known and unknown, could cause results, performance or achievements to be materially different from the results, performance or achievements that are or may be expressed or implied by such forward-looking statements. The Company does not intend, and does not assume any obligation, to update these forward-looking statements or information to reflect changes in assumptions or changes in circumstances or any other events affections such statements and information other than as required by applicable laws, rules and regulations.