/NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED
STATES/
TORONTO,
Aug. 7, 2020 /CNW/
- Doré Copper Mining Corp. (the "Corporation"
or "Doré Copper") (TSXV: DCMC) is pleased to announce that
it has entered into an agreement with Canaccord Genuity Corp., on
behalf of itself and a syndicate of agents including Red Cloud
Securities Inc. (together, the "Agents"), in connection with
a "best efforts" private placement (the "Offering") of up to
approximately C$3 million of common
shares of the Corporation ("Common Shares") that will
qualify as "flow-through shares" within the meaning of subsection
66(15) of the Income Tax Act (Canada) (the "Federal Flow-Through
Shares"), and, in relation to the Common Shares issued to
residents of Québec, section 359.1 of the Taxation Act
(Québec) (the "Québec Flow-Through Shares" and together with
the Federal Flow-Through Shares, the "Flow-Through Shares").
The Federal Flow-Through Shares will be issued to residents outside
of Québec at an issue price of C$1.12
per Federal Flow-Through Share and the Québec Flow-Through Shares
will be issued to residents of Québec at an issue price of
C$1.20 per Québec Flow-Through
Share.
The Corporation has also granted the Agents an option,
exercisable in whole or in part at any time up to 48 hours prior to
closing of the Offering, which will allow the Agents to sell up to
an additional $450,000 of Federal
Flow-Through Shares and/or Québec Flow-Through Shares on the same
terms.
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, 2021, and to renounce all the
Qualifying Expenditures in favour of the subscribers of the
Flow-Through Shares effective December 31,
2020. In addition, with respect to Québec resident
subscribers 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 is expected to close on or about August 25, 2020 and is subject to certain closing
conditions including, but not limited to, the receipt of all
necessary approvals including the conditional acceptance of the TSX
Venture Exchange. The Offering is being made by way of private
placement in Canada. The
securities issued under the Offering will be subject to a hold
period in Canada expiring four
months and one day from the closing date of the
Offering.
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 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, and
an option to acquire 100% of the past producing Joe Mann gold mine
(see press release dated January 2,
2020), all 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 2020 drill program at Corner Bay and Cedar Bay
has been successful in intercepting mineralization at both
Projects. Both deposits are open in various directions 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 along with material from the Joe Mann mine
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 terms of the Offering, the use of
proceeds of the Offering, the timing and ability of the Corporation
to close the Offering, the timing and ability of the Corporation to
receive necessary regulatory approvals, 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.