/NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED
STATES/
TORONTO, Dec. 30, 2019 /CNW/ - Doré Copper Mining Corp.
(the "Corporation" or "Doré Copper") (TSX-V:DCMC) is
pleased to announce that it has closed the final tranche of its
previously announced "best efforts" brokered private placement (the
"Offering"), pursuant to which the Corporation sold an
aggregate of 883,485 common shares in the capital of the
Corporation that will qualify as "flow-through shares" within the
meaning of subsection 66(15) of the Income Tax Act
(Canada) and, in relation to
common shares issued to residents in Québec, section 359.1 of the
Taxation Act (Québec) (collectively, the "Flow-Through
Shares"), for aggregate gross proceeds of C$1,450,050.25. The Flow-Through Shares were
issued in two tranches with the first tranche consisting of 848,485
Flow-Through Shares issued to residents of Québec at a price of
C$1.65 per Flow-Through Share for
aggregate gross proceeds of C$1,400,000.25 and the second tranche consisting
of 35,000 Flow-Through Shares issued to residents outside of Québec
at a price of C$1.43 per Flow-Through
Share for aggregate gross proceeds of C$50,050. The total aggregate gross proceeds
raised under the Offering was C$4,471,123.25.
Canaccord Genuity Corp. acted as agent (the "Agent") in
connection with the Offering pursuant to the terms of an agency
agreement dated December 23, 2019. In
consideration for its services in connection with the closing of
the final tranche of the Offering, the Corporation paid the Agent a
cash commission equal to 7% of the aggregate gross proceeds from
the sale of Flow-Through Shares, and a reduced cash commission
equal to 4.25% of the aggregate gross proceeds from the sale of
Flow-Through Shares to certain purchasers. As additional
consideration for its services in connection with the closing of
the final tranche of the Offering, the Corporation issued the Agent
non-transferable broker warrants of the Corporation ("Broker
Warrants") equal to 7% of the aggregate number of Flow-Through
Shares issued. Each Broker Warrant is exercisable to acquire one
common share in the capital of the Corporation at an exercise price
of C$1.43 per share until
December 30, 2021.
The Corporation will use an amount equal to the gross proceeds
received by the Corporation from the sale of the Flow-Through
Shares, pursuant to the provisions in the Income Tax Act
(Canada) and the Taxation
Act (Québec), to incur eligible "Canadian exploration expenses"
that qualify as "flow-through mining expenditures" as both terms
are defined in the Income Tax Act (Canada) (the "Qualifying Expenditures")
on or before December 31, 2020, and
will renounce all of the Qualifying Expenditures in favour of the
purchasers of the Flow-Through Shares effective December 31, 2019. In addition, with respect to
Québec resident purchasers of the Flow-Through Shares who are
eligible individuals under the Taxation Act (Québec), the
Canadian exploration expenses will also qualify for inclusion in
the "exploration base relating to certain Québec exploration
expenses" within the meaning of section 726.4.10 of the Taxation
Act (Québec) and for inclusion in the "exploration base
relating to certain Québec surface mining expenses or oil and gas
exploration expenses" within the meaning of section 726.4.17.2 of
the Taxation Act (Québec).
The Offering was made by way of private placement in each of the
provinces of Canada pursuant to
applicable exemptions from the prospectus requirements under
applicable Canadian securities laws. The securities issued in
connection with the closing of the final tranche of the Offering
are subject to a hold period under applicable Canadian securities
laws which will expire on May 1,
2020. The Offering is subject to final acceptance of the TSX
Venture Exchange.
The securities offered have not been registered under the United
States Securities Act of 1933, as amended, or any state securities
law, and may not be offered or sold in the United States absent registration or an
exemption from such registration requirements. This news release
shall not constitute an offer to sell or the solicitation of an
offer to buy in the United States
nor shall there be any sale of the securities in any State in which
such offer, solicitation or sale would be unlawful.
About Doré Copper Mining Corp.
Doré Copper is engaged in the acquisition, exploration and
evaluation of mineral properties.
Doré Copper completed a qualifying transaction on December 13, 2019 establishing itself as a copper
– gold explorer and developer in the Chibougamau area of Québec, Canada.
Doré Copper, through its wholly-owned subsidiary CBAY Minerals
Inc., holds a 100% interest in the exploration-stage Corner Bay
Project and the exploration-stage Cedar Bay Project, both located
in the vicinity of Chibougamau,
Québec. The Corner Bay Project has an indicated resource of 1.35 Mt
at average grades of 3.01% Cu and 0.29 g/t Au, containing 89.8 Mlb
of copper and 13,000 ounces of gold, and an inferred resource of
1.66 Mt at average grades of 3.84% Cu and 0.27 g/t Au, containing
140.3 Mlb of copper and 15,000 ounces of gold, assuming a cut-off
grade of 1.5% Cu and a copper price of US$3.25 per pound. The Cedar Bay Project has an
indicated resource of 130 kt at average grades of 9.44 g/t Au and
1.55% Cu, containing 39,000 ounces of gold and 4.4 Mlb of copper,
and an inferred resource of 230 kt at average grades of 8.32 g/t Au
and 2.13% Cu, containing 61,000 ounces of gold and 10.8 Mlb of
copper, assuming a cut-off grade of 2.9 g/t Au and a gold price of
US$1,400 per ounce. Doré Copper's
drill program has been successful at expanding the resources at the
Corner Bay Project and confirming three high grade veins at the
shaft bottom depth at the Cedar Bay Project. Both deposits are open
along strike and down dip. Both the Corner Bay Project and the
Cedar Bay Project are accessible by road and are approximately 20
km apart. Mineralization from both the Corner Bay Project and the
Cedar Bay Project would be treated at Doré Copper's Copper Rand
concentrator located 8 km southwest of Chibougamau, Québec. For further information,
please see the technical report entitled "Technical Report on the
Corner Bay and Cedar Bay Projects, Northwest Québec, Canada" dated June 15,
2019, prepared by Luke Evans,
M.Sc., P.Eng., which is available under Doré Copper's profile on
SEDAR at www.sedar.com.
Andrey Rinta, P.Geo., the
Exploration Manager of the Corporation and a "Qualified Person"
within the meaning of National Instrument 43-101, has reviewed and
approved the technical information contained in this news
release.
Cautionary Note Regarding Forward-Looking Statements
This news release includes certain "forward-looking
statements" under applicable Canadian securities legislation.
Forward-looking statements include, but are not limited to,
statements with respect to the use of proceeds of the Offering, the
timing and ability of the Corporation to receive final acceptance
of the Offering from the TSX Venture Exchange, and the plans,
operations and prospects of the Corporation. Forward-looking
statements are necessarily based upon a number of estimates and
assumptions that, while considered reasonable, are subject to known
and unknown risks, uncertainties and other factors which may cause
the actual results and future events to differ materially from
those expressed or implied by such forward-looking statements. Such
factors include, but are not limited to: general business,
economic, competitive, political and social uncertainties; delay or
failure to receive regulatory approvals; the price of gold and
copper; and the results of current exploration. There can be no
assurance that such statements will prove to be accurate, as actual
results and future events could differ materially from those
anticipated in such statements. Accordingly, readers should not
place undue reliance on forward-looking statements. The Corporation
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 required by law.
Neither 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.
SOURCE Doré Copper Mining Corp.