Vancouver, B.C. – May 21, 2020 – District Copper Corp. (“District Copper” or the “Company”) (TSX-V: DCOP – OTC: CAXPF) is pleased to announce that it has received conditional approval from the TSX Venture Exchange to the Company’s proposed sale of the Eaglehead Property located in the Liard Mining Division of northern British Columbia, to Northern Fox Copper Inc. (the “Purchaser”), a wholly owned subsidiary of Copper Fox Metals Inc. The terms of disposition were disclosed by the Company in its news release of February 10, 2020.
A fundamental term of the Agreement requires that Northern Fox provide replacement security to the Ministry of Mines in the Province of British Columbia for reclamation bonds posted by District Copper in the amount of $212,000 and that the bonding amounts pledged by District Copper be available for release to District Copper concurrently with the closing of the sale.
Each of District Copper and the Purchaser have submitted the documentation required by the Ministry of Mines in order to allow Northern Fox to deposit the replacement bonding amounts. The Ministry of Mines has advised the parties that the substituted bonding arrangements will take approximately 60 days to process due to the current COVID19 workforce interruptions.
At the Closing of the purchase and sale, District Copper will receive a total of $362,000. The balance of the purchase price in the amount of $1,000,000 will be payable in three annual installments of $340,000, $330,000 and $330,000 respectively on each anniversary date following the Closing.
Following the Closing, the TSX Venture Exchange will issue a final Exchange Bulletin subject to additional closing documents in acceptable form first being filed with the Exchange.
About District Copper
District Copper is a Canadian company previously engaged in exploration for porphyry copper-gold- molybdenum deposits in northwestern British Columbia and since 2018 in the exploration of the Stoney Lake property in Newfoundland.
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.
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.