OAKVILLE, ON, Sept. 22, 2014 /CNW/ - Canoe Mining Ventures Corp. (TSXV: CLV) ("Canoe Mining") is pleased to announce that it has entered into a definitive agreement (the "Definitive Agreement"), with Glencore Canada Corporation ("Glencore"), Mega Uranium Ltd., and Rainy Mountain Royalty Corp. to acquire a 100% interest in the Hamlin-Deaty Creek Property (the "Transaction"). The Hamlin-Deaty Creek Property (the "Property") is located 110km west of Thunder Bay, Ontario in the Shebandowan Belt, as described in Canoe Mining's May 12, 2014 news release.
The Transaction fits within Canoe Mining's corporate strategy to consolidate the Shebandowan copper gold belt. Upon closing the Transaction, management will integrate the extensive geological data set produced by the previous operator into a proprietary regional database of the area which includes information on Canoe Mining`s East Coldstream Gold Deposit.
Pursuant to the terms of the Definitive Agreement and in consideration for the Property, Glencore will receive $50,000, a 1% net smelter royalty and be offered a right of first refusal for any future off-take agreement. Additionally, Rainy Mountain Royalty Corp. and Mega Uranium Ltd. will each be issued one million common shares in the capital of Canoe Mining.
Canoe Mining also announces that it intends to proceed with an equity offering consisting of a non-brokered private placement of up to 2,000,000 units at a price of $0.15 per unit ("Unit"), for total gross proceeds of up to $300,000 (the "Private Placement"). Each Unit will consist of one Canoe Mining common share and one-half of one common share purchase warrant. Each whole common share purchase warrant will entitle the holder to acquire one common share of Canoe Mining at a price of $0.25 for a period of 24 months from the closing date of the Private Placement. Management, directors, and insiders of Canoe Mining intend on participating in the Private Placement, the net proceeds of which are to be used for general working capital purposes and for project acquisitions.
Work on the Property will be supervised by R.S. Middleton, P.Eng who is a qualified person as such term is defined in NI 43-101 and who has reviewed and approved the technical information and data included in this press release.
The Transaction and the Private Placement are subject to the receipt of all required regulatory and exchange approvals.
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 news release.
On Behalf of the Board of Directors of Canoe Mining,
Duane Parnham, Director
Forward Looking Statements
This news release includes certain forward-looking statements or information. All statements other than statements of historical fact included in this release or other future plans, objectives or expectations of Canoe Mining 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. Important factors that could cause actual results to differ materially from Canoe Mining's plans or expectations include risks relating to the actual results of current exploration activities, fluctuating gold prices, possibility of equipment breakdowns and delays, exploration cost overruns, availability of capital and financing, general economic, market or business conditions, regulatory changes, timeliness of government or regulatory approvals and other risks detailed herein and from time to time in the filings made by Canoe Mining with securities regulators. Canoe Mining expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise except as otherwise required by applicable securities legislation.
SOURCE: Canoe Mining Ventures Corp.
For further information: Luke Vigeant, Manager, Investor Relations, Canoe Mining Ventures Corp., Tel: 1.905.844.7612, Email: [email protected]