Vancouver, B.C. – July 30, 2020 – District Copper Corp. (“District”) (TSX-Venture: DCOP) is pleased to announce that it has entered into an arm’s length mineral property option agreement (the “Agreement”) with Global Vanadium Corp (“Global”) (TSX-Venture: GLV). The Agreement allows Global to option and earn up to 100% of eight mineral licenses (the “Property”) located in the vicinity of Grand Falls central Newfoundland, known as Stony Lake. The acquisitions are subject to TSX Venture Exchange approval.
GRANT OF OPTION AND OPTION TERMS
Global can exercise the option to earn a 75% interest in the Property according to the following terms:
a) paying District $75,000 CDN within fifteen business days following the date this Agreement is accepted for filing by the TSX Venture Exchange (the "Approval Date”);
b) issuing District 500,000 fully paid and non-assessable common shares of Global within fifteen business days following the Approval Date;
c) paying District $125,000 CDN and making exploration expenditures of not less than $150,000 CDN by or before the 15-month anniversary of the Approval Date;
d) issuing District 1,200,000 fully paid and non-assessable common shares of Global on or before the 15- month anniversary of the Approval Date;
e) paying District $150,000 CDN and making additional Exploration Expenditures of not less than $250,000 CDN (for cumulative Exploration Expenditures of $400,000 CDN) by or before the 2-year anniversary of the Approval Date; and
f) issuing District an additional 1,600,000 fully paid and non-assessable common shares of the Purchaser on or before the 2-year anniversary of the Approval Date.
The 25% exercise price terms are as follows. Global can exercise the option as to a further 25% interest in the Property (for a total interest of 100% percent) by:
a) paying District $500,000 CDN on or before the 3-year anniversary of the Approval Date; and
b) issuing District 2,000,000 fully paid and non-assessable common shares of Global on or before the 3-year anniversary of the Approval Date.
“We look forward to having Global as a joint venture participant in the development of the Stony Lake project and, if Global exercises their full option, we look forward to becoming an equity participant in their company.”
About District Copper
District Copper is a Canadian company historically engaged in exploration for porphyry copper-gold-molybdenum deposits in northwestern British Columbia. Its acquisitions and partnerships of additional properties is intended to expand areas of interest for the Company and its Shareholders.
For further information, please visit the website at www.districtcoppercorp.com to view the Company’s profile or contact Jevin Werbes at 604-620-7737.
Jevin Werbes, President & CEO
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 does not constitute an offer to sell or a solicitation of an offer to sell any of the securities described herein in the United States. The securities described in this news release have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available. This news release is not for distribution in the United States or over United States newswires.
Cautionary Statement on Forward Looking Statement
Information contained in this news release, including information as to strategy, projects, plans or future financial or operating performance and other statements that express management's expectations or estimates of future performance, constitute "forward looking statements". Actual results may differ materially from those indicated by such statements. All statements, other than historical fact, included herein, including, without limitations statements regarding future production, 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. Forward-looking information in this news release includes, but is not limited to, statements about the exploration program at the Stony Lake project, the identification of six exploration targets, epithermal style alteration and mineralization, anomalous areas defined by geochemical sampling, structural setting of other zones of gold mineralization, the reference to the style and grade of the gold mineralization in the Moosehead zone and statements about District Copper's strategy, future operations and prospects. There is no assurance that the transaction to acquire the Stony Lake project will complete on a timely basis or at all; that additional exploration may not located the style and concentration of gold mineralization located to date on the property, additional exploration may not located gold mineralization similar to that in the Moosehead zone or any gold mineralization at all, there is no assurance that District Copper will be able to fund the exploration expenditures required to fund the acquisition of 100% of the Property or adequately fund future exploration programs.
A more complete discussion of the risks and uncertainties facing District Copper is disclosed in District Copper's continuous disclosure filings with Canadian securities regulatory authorities at www.sedar.com. All forward-looking information herein is qualified in its entirety by this cautionary statement, and District Copper disclaims any obligation to revise or update any such forward-looking information or to publicly announce the result of any revisions to any of the forward-looking information contained herein to reflect future results, events or developments, except as required by law.