Kutcho Copper Announces $2 Million Private Placement and Interest Deferral Agreement with Wheaton Precious Metals
September 01 2020 - 7:00AM
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-half of one transferable common share purchase warrant
(each whole being a “Warrant”). Each Warrant entitles the holder to
acquire one common share of the Company for a period of 2 years
from closing at a price of $0.30.
Proceeds of the Private Placement will be used
to commence the Company’s feasibility study on the Kutcho Copper
project and for general corporate and working capital purposes.
Closing of the Private Placement is subject to receipt of TSX
Venture Exchange approval. The Company may pay finder’s fees as
permitted by TSXV policy.
“Kutcho Copper continues to advance and de-risk
its high-grade copper development project. Proceeds from this
financing will allow the Company to initiate this next crucial
milestone in the continued development of the Kutcho Copper Project
as we progress the project towards production,” said Vince Sorace,
President and CEO of Kutcho Copper Corp. “The Kutcho Copper project
is uniquely positioned with a clear path through feasibility,
permitting and ultimately production, and we are excited to
commence this next leg of our journey.”
The Company also announces that Wheaton Precious
Metals Corp. (“Wheaton”) has agreed to amend its definitive
documentation related to its previous convertible debenture
investment in the Company. Under the amendment, semi-annual
interest payments that are otherwise owing by Kutcho Copper on
December 31, 2020 and June 30, 2021 will be deferred until December
31, 2021. Additionally, Wheaton has also agreed that the maturity
date of the non-revolving credit facility of up to $1,300,000
provided by Wheaton will be extended to December 31, 2021. These
amendments are subject to customary conditions, including
completion of the Private Placement.
The Company also announces the grant of an
aggregate of 1,475,000 stock options to consultants, directors and
senior officers of the Company, with each option exercisable at a
price of $0.25 per share for a period of five years. Certain of the
stock options may be subject to vesting requirements as determined
by the Board of Directors. The options have been granted in
accordance with the terms of the Company’s current stock option
plan.
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” 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. Such material risks and uncertainties
include, but are not limited to, the Company’s ability to raise
sufficient capital to fund its obligations under its property
agreements going forward, to maintain its mineral tenures and
concessions in good standing, to explore and develop the Kutcho
project or its other projects, to repay its debt and for general
working capital purposes; changes in economic conditions or
financial markets; the inherent hazards associates with mineral
exploration and mining operations, future prices of copper and
other metals, changes in general economic conditions, accuracy of
mineral resource and reserve estimates, the ability of the Company
to obtain the necessary permits and consents required to explore,
drill and develop the Kutcho project and if obtained, to obtain
such permits and consents in a timely fashion relative to the
Company’s plans and business objectives for the projects; the
general ability of the Company to monetize its mineral resources;
and changes in environmental and other laws or regulations that
could have an impact on the Company’s operations, compliance with
environmental laws and regulations, aboriginal title claims and
rights to consultation and accommodation, dependence on key
management personnel and general competition in the mining
industry. Forward-looking statements are based on the reasonable
beliefs, estimates and opinions of the Company’s management on the
date the statements are made. Except as required by law, the
Company undertakes no obligation to update these forward-looking
statements in the event that management’s beliefs, estimates or
opinions, or other factors, should change.
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