C3 Metals Inc (CVE:CCCM) (OTCMKTS:CARCF), formerly Carube Copper, has entered into an agreement to acquire 100% of Hochschild Mining PLC’s (LON:HOC) (OTCMKTS:HCHDF) (FRA:H3M) interest in the company’s flagship Jasperoide Copper-Gold Project in Peru.
C3 Metals said consolidation of the ownership in Jasperoide will be executed through an amendment of the original Master Agreement signed in 2017.
The company said the transaction is between its wholly-owned subsidiary C3 Metals Peru SAC (C3 Peru), Hochschild Mining, and Compañia Minera Ares SAC (Ares), a wholly-owned subsidiary of Hochschild.
READ: C3 Metals set for geophysics surveys at Peru project to investigate deeper copper porphyry potential
In consideration for the acquisition, C3 Metals said it will issue 25,001,540 common shares to Hochschild (or about 4.65% on a fully diluted basis).
“On May 25th, we announced high-grade copper in drilling, confirming our enthusiasm for Jasperoide becoming one of the best new copper deposits to be defined in the Americas,” said C3 Metals CEO Kevin Tomlinson in a statement.
“Inasmuch as we didn’t own 100% of Hochschild’s interest, it became our priority to simplify the ownership and enhance C3 Metals as an investment opportunity. The company is thus very pleased to have reached agreement with Hochschild to consolidate its ownership in the exciting Jasperoide project. This simplification of the existing ownership structure in the project enables the company to accelerate its exploration efforts, which are aimed at delineating a large-scale copper-gold deposit. With only four years of exploration since its discovery in 1994, the Jasperoide Project remains very much in its infancy.”
Tomlinson added: “Simultaneously, as part of this transaction, we are delighted to have such a reputable mining group as Hochschild joins our share register, enhancing C3 Metals’ appeal to investors and we look forward to their ongoing support as we continue to grow the company.”
In connection with the acquisition, the C3 Metals said it will grant a 2% net smelter returns (NSR) royalty in favour of Ares in respect of the Hochschild Jasperoide mineral concessions, subject to the right of the company to purchase 1% of the NSR (thereby reducing the NSR to 1%) for a price of US$1 million at any time, replacing the previously granted 1.5% NSR royalty that had no buyback provision.
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Story by ProactiveInvestors
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