Mr. Timothy Johnson reports
GRANITE CREEK COPPER PROVIDES ADDITIONAL DETAIL FOR ACQUISITION OF THE LS MOLYBDENUM PROJECT IN BRITISH COLUMBIA, CANADA
Granite Creek Copper Ltd. has provided additional detail on the acquisition of a 100-per-cent interest in the Lucky Ship molybdenum project (LS project) from two arm's-length vendors (see news release dated March 22, 2023). The LS project is located within the traditional territory of the Wet'suwet'en First Nation in central British Columbia and is in a region with a long history of mining, including the Endako molybdenum mine, the Huckleberry copper-molybdenum mine, the Equity silver mine and others. The project is accessible year-round along a well-developed network of forestry roads, with a high-capacity power line within 50 kilometres and paved highway and rail line access within 85 kilometres.
Under the terms of the option agreement, the company can acquire a 100-per-cent interest in the LS project for the following consideration:
1. Issue the vendors 3.75 million common shares as follows:
- 500,000 shares within 10 days following TSX Venture Exchange approval;
- 750,000 shares on or before the 12-month anniversary of TSX-V approval (year one);
- One million shares on or before the 24-month anniversary of TSX-V approval (year two);
- 1.5 million shares on or before the 36-month anniversary of TSX-V approval (year three).
- Keep the LS project in good standing by completing work, filing portable assessment credit or paying cash in lieu thereof of: (i) a minimum number of work credits equal to two years' assessment credit on or before the conclusion of year one; (ii) a minimum number of work credits equal to two years' assessment credit on or before the conclusion of year two; and (iii) a minimum number of work credits equal to four years' assessment credit on or before the conclusion of year three.
- On completion of the share issuances and the work, if the total aggregate cash value of the share issuances totals less than $300,000, then the company will make a cash payment to the vendors equal to the difference between the aggregate cash value of the share issuances and $300,000.
On exercise of the option agreement, the company will grant the vendors from and after commercial production an aggregate 2.0-per-cent net smelter returns royalty on the LS project. The company shall have the right at any time to purchase the first 1 per cent of the NSR royalty for $500,000 and the remaining 1-per-cent NSR royalty for $1-million.
The acquisition of the LS project is subject to approval by the TSX Venture exchange.
Granite Creek further announces it has granted 300,000 incentive stock options to a director of the company. The options are exercisable for up to five years, expiring on May 2, 2028, and each option will allow the holder to purchase one common share of the company at a price of eight cents per share.
About Granite Creek Copper Ltd.
Granite Creek, a member of the Metallic Group of Companies, is a Canadian exploration company focused on the exploration and development of critical minerals projects in North America. The company's projects consist of its flagship 176-square-kilometre Carmacks project in the Minto copper district of Yukon, Canada, on trend with the high-grade Minto copper-gold mine, operated by Minto Metals Corp.; as well as the advance-staged Lucky Ship molybdenum project and the copper/nickel/platinum group metal Star project, both located in central British Columbia.
We seek Safe Harbor.
© 2023 Canjex Publishing Ltd. All rights reserved.