VANCOUVER, British Columbia, May 27, 2019 (GLOBE NEWSWIRE) -- 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 common share purchase warrant (each a “Warrant”). Each Warrant entitles the holder to acquire one common share of the Company for a period of 3 years from closing at a price of $0.30.
The Company intends to close the Private Placement on or about June 5, 2019. Proceeds of the Private Placement will be used for ongoing expenditures on the Kutcho copper project and for general corporate and working capital purposes.
“Kutcho Copper is advancing its high-grade copper development project that has low upfront capital costs, low operating costs and significant upside potential, as demonstrated in the prefeasibility study (PFS) reported on June 15, 2017. Subsequent increases in mineral resources confirms the long life and exploration upside of the project,” said Vince Sorace, President and CEO of Kutcho Copper Corp. “However, the inherent value of the project and the progress made by the Company are not being reflected in the Company’s current share price, therefore we believe the best path forward is to minimize spending and equity dilution until this inherent value is better recognized. This financing provides us with ample working capital to complete the metallurgical program and continue with permitting initiatives. It also allows us the flexibility and patience to continue and evaluate multiple strategic opportunities whether on a standalone basis, through mergers and acquisitions or strategic alternatives that would deliver maximum equity upside to our shareholders. The Kutcho copper project is a great asset and well positioned with a clear path through feasibility, permitting and ultimately production.”
The Company is continuing its work on completing its metallurgical program, and will report results in the coming weeks. The Company is also finalizing the project description which once filed, will mark the project’s official entry into the Environmental Assessment process.
The financing is being supported by major shareholders of the Company including Wheaton Precious Metals Corp, Capstone Mining Corp. and directors and officers of the Company. Participation of insiders of the Company in the Private Placement constitutes a related-party transaction as defined under Multilateral Instrument 61-101. Because the Company’s shares trade only on the TSX Venture Exchange (“TSXV”), the issuance of securities is exempt from the formal valuation requirements of Section 5.4 of MI 61-101 pursuant to Subsection 5.5(b) of MI 61-101 and exempt from the minority approval requirements of Section 5.6 of MI 61-101 pursuant to Subsection 5.7(b) of MI 61-101. Finder’s fees may be paid on a portion of the Private Placement, as permitted by TSXV policies and applicable securities laws. The Private Placement is subject to TSXV approval.
President & CEO, Kutcho Copper Corp.
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”, “indicates”, “opportunity”, “possible” 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.