Kutcho Copper Announces $2 Million Private Placement
May 27 2019 - 4:43PM
Kutcho Copper Corp. (TSXV: KC) (OTC: KCCFF)
(“Kutcho Copper” or the “Company”) today announced that it has
arranged a non-brokered private placement (the “Private Placement”)
for total gross proceeds of C$2,000,000. The Private Placement will
consist of 10,000,000 units at a price of $0.20 per unit (each a
“Unit”). Each Unit is comprised of one common share of the Company
and one common share purchase warrant (each a “Warrant”). Each
Warrant entitles the holder to acquire one common share of the
Company for a period of 3 years from closing at a price of $0.30.
The Company intends to close the Private
Placement on or about June 5, 2019. Proceeds of the Private
Placement will be used for ongoing expenditures on the Kutcho
copper project and for general corporate and working capital
purposes.
“Kutcho Copper is advancing its high-grade
copper development project that has low upfront capital costs, low
operating costs and significant upside potential, as demonstrated
in the prefeasibility study (PFS) reported on June 15, 2017.
Subsequent increases in mineral resources confirms the long life
and exploration upside of the project,” said Vince Sorace,
President and CEO of Kutcho Copper Corp. “However, the
inherent value of the project and the progress made by the Company
are not being reflected in the Company’s current share price,
therefore we believe the best path forward is to minimize spending
and equity dilution until this inherent value is better
recognized. This financing provides us with ample working
capital to complete the metallurgical program and continue with
permitting initiatives. It also allows us the flexibility and
patience to continue and evaluate multiple strategic opportunities
whether on a standalone basis, through mergers and acquisitions or
strategic alternatives that would deliver maximum equity upside to
our shareholders. The Kutcho copper project is a great asset
and well positioned with a clear path through feasibility,
permitting and ultimately production.”
The Company is continuing its work on completing
its metallurgical program, and will report results in the coming
weeks. The Company is also finalizing the project description
which once filed, will mark the project’s official entry into the
Environmental Assessment process.
The financing is being supported by major
shareholders of the Company including Wheaton Precious Metals Corp,
Capstone Mining Corp. and directors and officers of the Company.
Participation of insiders of the Company in the Private Placement
constitutes a related-party transaction as defined under
Multilateral Instrument 61-101. Because the Company’s shares trade
only on the TSX Venture Exchange (“TSXV”), the issuance of
securities is exempt from the formal valuation requirements of
Section 5.4 of MI 61-101 pursuant to Subsection 5.5(b) of MI 61-101
and exempt from the minority approval requirements of Section 5.6
of MI 61-101 pursuant to Subsection 5.7(b) of MI 61-101.
Finder’s fees may be paid on a portion of the Private Placement, as
permitted by TSXV policies and applicable securities laws. The
Private Placement is subject to TSXV approval.
Vince Sorace President & CEO, Kutcho Copper Corp.
For further information regarding Kutcho Copper Corp., please
email info@kutcho.ca or visit our website at www.kutcho.ca.
Cautionary Note Regarding Forward-Looking
Statements
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 contains certain statements
that may be deemed “forward-looking statements” with respect to the
Company within the meaning of applicable securities laws.
Forward-looking statements are statements that are not historical
facts and are generally, but not always, identified by the words
“expects”, “plans”, “anticipates”, “believes”, “intends”,
“estimates”, “projects”, “potential”, “indicates”, “opportunity”,
“possible” and similar expressions, or that events or conditions
“will”, “would”, “may”, “could” or “should” occur. Although Kutcho
Copper believes the expectations expressed in such forward-looking
statements are based on reasonable assumptions, such statements are
not guarantees of future performance, are subject to risks and
uncertainties, and actual results or realities may differ
materially from those in the forward-looking statements.
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