VANCOUVER, BC, Sept. 3, 2024 /CNW/ - Coast Copper Corp. ("Coast Copper" or the "Company"); (TSXV: COCO) is pleased to announce that it has acquired the Sweeney property ("Sweeney" or "Property"), consisting of two separate transactions. Coast Copper has acquired 8 mineral claims totaling 1,492 hectares ("ha") from Cazador Resources Ltd. ("Cazador"), a private company controlled by Coast Copper's CEO Adam Travis ("Cazador Claims"), and 2 mineral claims totaling 57 ha from arm's-length third party ("Third Party") ("Third Party Claims"). Details of the acquisitions are noted below. The Property is located approximately 135 kilometers ("km") by road, southwest of the town of Houston in the Central Interior of British Columbia. The Property is centrally located in the Huckleberry Mine Camp and is 7 km north northwest of the past producing Huckleberry Mine, 3 km west of Huckleberry Mines Ltd.'s Whiting Creek deposit and 8 km southeast of the Berg Deposit owned by Surge Copper Corp¹. See Figure 1.
Road accessible and close to existing infrastructure in the heart of the Huckleberry Camp.
Multiple vein and structural trends at 345-degree azimuth identified over a 1 km trend of high-grade silver ("Ag"), lead ("Pb"), zinc ("Zn") +/- gold ("Au") up to 3 meter ("m") wide quartz sulphide veins.
Historical underground development on the Emerald Vein took place on four levels (6400, 6275, 6000 and 5400 levels) and the mine operated intermittently from 1951 to 1968, producing 83,493 ounces ("oz") Ag, 49 oz Au, 1,966,396 pounds ("lbs") of Zn, 1,689,449 lbs of Pb, 19,872 lbs of copper ("Cu") and 3,713 lbs of cadmium from the milling of 8,293 tonnes of ore ² ³.
Unclassified reserves on the Emerald Vein are 40,800 tonnes grading 355 grams per tonne ("g/t") Ag, 8.23% Pb, 9.49% Zn and 1.13 g/t Au ² ³ with ore zones noted open to depth and not tested by the 2012 drilling noted below.
No drilling or underground exploration work was completed on the Property between 1971-2012, until a 2012 diamond drill program focused on the Miya Vein (cross cuts the Emerald Vein trend at 300 degrees) and consisted of 30 drillholes with an average depth of 52 m, covering over 350 m of strike length and returning gold values up to 7 g/t Au with high-grade silver, lead and zinc over 1-5 m intervals.
Outside of historical (and now reverted) crown grants, exploration has been very limited due to glacier and ice cover in the areas to the north and northwest of the historical work, which are now exposed and show significant alteration and some new discoveries around previously ice-covered edges (pre-2013).
Fletcher Morgan, Chairman comments: "I'm very pleased that we were able to acquire the prospective and strategically located Sweeney property for consideration amounting to the vendors' costs. Mr. Travis is continuing to fulfil the Company's goal of having a strategic mineral property acquisition program, as stated in the Company's May 16, 2024 news release. Coast Copper continues to accumulate prospective properties, positioning itself for a market turn in the junior mining space."
Purchase Agreement Terms
Cazador Purchase Agreement Terms
Under the terms of the Cazador purchase agreement ("Cazador Purchase Agreement"), in consideration for a 100% interest in the Property, Coast Copper will make a cash payment of $60,000 to Cazador, which will retain a 1% net smelter return ("NSR") royalty on the Cazador Claims, 0.5% of which may be purchased by Coast Copper for $2 million.
The Company's independent directors completed a review of the Cazador Claims prior to entering into the Cazador Purchase Agreement and agreed to cover Cazador's acquisition costs and initial reconnaissance program, and for Cazador to retain an NSR.
This transaction is considered a related party transaction within the meaning of Multilateral Instrument 61-101 -- Protection of Minority Security Holders in Special Transactions as the Cazador Claims are being sold to the Company by a director and officer. The transaction is exempt from the formal valuation and minority approval requirements in MI 61-101 as the fair market value of the consideration payable does not exceed 25% of the Company's market capitalization.
Third Party Purchase Agreement Terms
Under the terms of the Third-Party purchase agreement, in consideration for a 100% interest in the Third Party Claims, Coast Copper will make a cash payment of $134 to the Third Party, who will retain a 1% NSR royalty on the Third Party Claims, 0.5% of which may be purchased by Coast Copper for $1 million.
One mineral claim purchased is not adjacent to the Property.
Both purchase agreements are subject to TSX Venture Exchange approval.
Qualified Persons
The technical information contained in this news release has been prepared, reviewed, and approved by Wade Barnes, P.Geo. (BC), Coast Copper's geological consultant and a Qualified Person within the context of the Canadian Securities Administrators' NI 43-101; Standards of Disclosure for Mineral Projects.
About Coast Copper Corp.
Coast Copper's exploration focus is the 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 Sully property located in southeastern BC, Knob Hill NW property located on northern Vancouver Island, its Home Brew property in central BC, and its Scottie West property located in the "Golden Triangle" of northern 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: "Fletcher Morgan" Fletcher Morgan, Chair
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Cautionary Notes related to News Release/Maps ¹ This news release may contain information about adjacent properties on which Coast Copper has no right to explore or mine. Investors are cautioned that mineral deposits on adjacent properties are not indicative of mineral deposits on the Company's properties. ² BC Minfile Record Summary 093E 001 https://minfile.gov.bc.ca/Summary.aspx?minfilno=093E++001 ³ Historical information provided cannot be relied upon as the Company's QP as defined under NI 43-101 has not prepared nor verified the historical information. The stated resource is not NI 43-101 compliant and a Qualified Person has not done sufficient work as per NI 43-101 to classify the historical estimate as a current mineral resource and Coast Copper Corp. is not treating this historical estimate as current mineral resources. ⁴ Surge Copper Corp website and Imperial Metals website ⁵ 2012 Technical Assessment Report for the Miya Property, Lowprofile Ventures Ltd. BC Assessment Report 34241
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.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION
Certain information contained or incorporated by reference in this press release, including any information regarding the proposed Transaction, private placement, board and management changes, as to our strategy, projects, plans or future financial or operating performance, constitutes "forward-looking statements." All statements, other than statements of historical fact, are to be considered forward-looking statements. Forward-looking statements are necessarily based on a number of estimates and assumptions that, while considered reasonable by Coast Copper, are inherently subject to significant business, economic, geological and competitive uncertainties and contingencies. Although Coast Copper believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not a guarantee of future performance. Known and unknown factors could cause actual results to differ materially from those projected in the forward-looking statements. Such factors include but are not limited to: fluctuations in market prices, exploration and exploitation successes, continued availability of capital and financing, changes in national and local government legislation, taxation, controls, regulations, expropriation or nationalization of property and general political, economic, market or business conditions. Many of these uncertainties and contingencies can affect our actual results and could cause actual results to differ materially from those expressed or implied in any forward-looking statements made by, or on behalf of, us. Readers are cautioned that forward-looking statements are not guarantees of future performance and, therefore, readers are advised to rely on their own evaluation of such uncertainties. All of the forward-looking statements made in this press release, or incorporated by reference, are qualified by these cautionary statements. We do not assume any obligation to update any forward-looking statements.
