Coast Copper to Sell Red Chris Properties for $3 million
Vancouver, BC – Coast Copper Corp. (“Coast Copper” or the “Company”; TSX-V: COCO) is pleased to announce it has entered into an asset purchase agreement (the “Asset Purchase Agreement”) on August 4, 2022 with an arm’s-length reporting issuer (the “Purchaser”) who will acquire a 100% interest in the Company’s Gin, Bonanza and Eldorado properties (collectively, the “Red Chris Properties”) for an aggregate purchase price of $3,000,000 in cash and shares (the “Purchase Price”).
Adam Travis, Coast Copper CEO comments, “The sale of the Red Chris Properties will allow Coast Copper to focus on the optioned Empire Mine property on northern Vancouver Island. The cash portion of the purchase price will fortify Coast Copper’s treasury and assist the Company in continuing to explore the highly prospective Empire Mine property, while providing no dilution to the current shareholders in this difficult market environment, and the share portion of the purchase price will provide Coast Copper shareholders exposure to potential future growth of the Red Chris Properties.”
Asset Purchase Agreement
Under the terms of the Asset Purchase Agreement, on the closing date of the transaction (the “Closing Date”) and at each six-month anniversary of the Closing Date, ending 30 months from the Closing Date, the Purchaser shall pay Coast Copper $250,000 in cash and shall issue Purchaser common shares to Coast Copper with an aggregate value of $250,000, based on the 20-day volume-weighted average trading price of the Purchaser common shares for the 20 trading days ending on the date that is two business days prior to each payment date.
The Red Chris Properties are subject to a 2% net smelter returns royalty, half of which is owned by a private company controlled by the Chief Executive Officer of Coast Copper.
The completion of the transaction is subject to standard closing conditions, including receipt of all necessary regulatory approvals, including the approval of the TSX Venture Exchange. The shares issued under the transaction will be subject to a hold period expiring four months and one day from the date of issuance.
About Coast Copper Corp.
Coast Copper’s exploration focus is the optioned Empire Mine property, located on northern Vancouver Island, BC, which covers three historical open pit mines and two past-producing underground mines that yielded iron, copper, gold and silver. Coast Copper’s other properties include its 100% owned Knob Hill NW Property located on northern Vancouver Island and its Home Brew and Shovelnose South Properties which are located in central BC. Coast Copper’s management team continues to review precious and base metals opportunities in western North America.
On Behalf of the Board of Directors:
Adam Travis, Chief Executive Officer and Director
For further information, please contact:
Adam Travis, CEO
Coast Copper Corp.
409 Granville Street, Suite 904
Vancouver, B.C. V6C 1T2, Canada
E: [email protected]