Copper Lake Resources Ltd. (TSX-V: CPL) (Frankfurt: WOI) (OTC: WTCZF) is pleased to announce that it has closed the second and final tranche of its non-brokered private placement offering of Flow-Through Units previously announced on December 2, 2022.
In conjunction with the closing, the Company issued an additional 6,176,472 Units for gross proceeds of $525,000, resulting in a total issuance for the Private Placement of 15,097,472 Units for gross proceeds of $1,283,285.
Terr MacDonald, CEO of Copper Lake commented, “We are very pleased to have successfully raised these funds as the last few months have been very challenging for junior mining companies in the equity markets. We are now well positioned to complete our winter drill program on the Deep IP Discovery at the Main Billiton Zone on our Marshall Lake copper-zinc-silver VMS project, as well completing the additional LLEM geophysical surveys on the core area and the Teck Hill-Gazooma zone. This funding will also give us flexibility to increase the number of drill holes on the Deep IP Discovery should we decide to expand the program. We are eagerly looking forward to commencing the drill program in early January and take advantage of the frozen ground conditions.”
Each Unit is comprised of one common share in the capital of Copper Lake, that will qualify as a “flow-through share” as defined in the Income Tax Act (Canada), and one-half of one Common Share purchase warrant. Each Warrant entitles the holder to acquire one additional Common Share, that is not a flow through share, at an exercise price of $0.15 per Common Share for a period of 36 months from the closing date.
The Warrants shall be subject to an accelerated expiry date clause whereby, at any time following the expiry of the four-months and one day hold period, should the weighted average closing price of the Common Shares on the TSX Venture Exchange be more than $0.25 for a period of 15 consecutive trading days, the Company shall be entitled to accelerate the expiry date of the warrants to a date which is 30 days following the date on which the Company announces the accelerated expiry of the Warrants by press release.
In connection with the second and final tranche of the private placement, the Company will pay a cash finders’ fee of $45,497 and issue 535,260 finders’ warrants, resulting in total finder’s consideration across the Private Placement of $75,495 and 888,201 Finder’s Warrants. Each Finder Warrant entitles the holder to acquire one additional Common Share at an exercise price of $0.10 per Common Share for a period of 36 months from the closing date.
Completion of the private placement and payment of any finders’ fees remain subject to the receipt of all necessary regulatory approvals, including approval of the TSX-V.
In accordance with applicable Canadian securities laws, all securities issued pursuant to the private placement will have a hold period of four months and one day from the date of issuance.
The net proceeds of the financing will be used for qualifying Canadian Exploration Expenditures at the Company’s Marshall Lake project.
ABOUT COPPER LAKE RESOURCES
Copper Lake Resources Ltd. is a publicly traded Canadian mineral exploration and development company with interests in two projects both located in Ontario. www.copperlakeresources.com
The Marshall Lake high-grade VMS copper, zinc, silver and gold project, comprises an area of approximately 220 square km located 120 km north of Geraldton, Ontario and is accessible by all-season road from the Trans-Canada Highway and just 22 km north of the main CNR rail line. Copper Lake has a 79.45% interest in the joint ventured property, which consists of 233 claims and 52 mining leases. The project also includes 148 claim cells staked in 2018 and 2020 that are 100% owned and not subject to any royalties, which add approximately 30 square km to the original property.
In addition to the original Marshall Lake property above, Marshall Lake also includes the Sollas Lake and Summit Lake properties, which are 100% owned by the Company and are not subject to any royalties. The Sollas Lake property consists of 20 claim cells comprising an area of 4 square km on the east side of the Marshall Lake property where historical EM airborne geophysical surveys have outlined strong conductors on the property hosted within the same favorable felsic volcanic units. The Summit Lake property currently consists of 100 claim cells comprising an area of 20.5 square km, is accessible year-round, and is located immediately west of the original Marshall Lake property. The Marshall Lake project is located in the traditional territories of the Aroland and Animbiigoo Zaagi igan Anishinaabek First Nations.
Copper Lake also has a 69.79% joint venture interest in the Norton Lake nickel, copper, cobalt, and palladium PGM property, located in the southern Ring of Fire area, is approximately 100 km north of the Marshall Lake Property. The Norton Lake property has a NI 43-101 compliant Measured and Indicated resource of 2.26 million tonnes @ 0.67% Ni, 0.61% Cu, 0.03% Co and 0.46 g/t Pd. The Norton Lake property is located in the traditional territories of the Eabametoong (“Fort Hope”) and Neskantaga First Nations.
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We acknowledge the [financial] support of the Government of Canada.