Not for distribution to United States news wire services or for dissemination in the United States
Toronto, Ontario – May 18, 2021 – Doré Copper Mining Corp. (the “Corporation” or “Doré Copper“) (TSX-V:DCMC; OTCQB:DRCMF; FRA:DRM) is pleased to announce that it has entered into an agreement pursuant to which Cormark Securities Inc. and Paradigm Capital Inc., as co-lead underwriters, (collectively, the “Underwriters“), have agreed to purchase, on a “bought deal” private placement basis: (i) 8,000,000 common shares in the capital of the Corporation (the “Offered Common Shares“) at a price of $1.00 per Offered Common Share (the “Common Share Offering Price“) for gross proceeds of $8,000,000 and (ii) 2,907,000 common shares in the capital of the Corporation that will qualify as “flow-through shares” (within the meaning of subsection 66(15) of the Income Tax Act (Canada) and section 359.1 of the Taxation Act (Québec)) (the “Flow-Through Shares“) at a price of $1.72 per Flow-Through Share for gross proceeds of $5,000,040, for aggregate gross proceeds to the Corporation of approximately $13 million (collectively, the “Offering“).
The Underwriters will have the option, exercisable in whole or in part at any time up to 48 hours prior to the closing of the Offering, to arrange for the purchase of up to an additional 1,636,050 Offered Common Shares at the Common Share Offering Price.
The net proceeds from the sale of the Offered Common Shares will be used for exploration and development activities and for working capital and general corporate purposes. The Corporation will use an amount equal to the gross proceeds received by the Corporation from the sale of the Flow-Through Shares, pursuant to the provisions in the Income Tax Act (Canada), to incur eligible “Canadian exploration expenses” that qualify as “flow-through mining expenditures” as both terms are defined in the Income Tax Act (Canada) (the “Qualifying Expenditures“) related to the Corporation’s projects in Québec, on or before December 31, 2022, and to renounce all the Qualifying Expenditures in favour of the subscribers of the Flow-Through Shares effective December 31, 2021. In addition, with respect to Québec resident subscribers who are eligible individuals under the Taxation Act (Québec), the Canadian exploration expenses will also qualify for inclusion in the “exploration base relating to certain Québec exploration expenses” within the meaning of section 726.4.10 of the Taxation Act (Québec) and for inclusion in the “exploration base relating to certain Québec surface mining expenses or oil and gas exploration expenses” within the meaning of section 722.214.171.124 of the Taxation Act (Québec).
The Offering is expected to close on or about June 9, 2021, or such other date as the Corporation and the Underwriters may agree and is subject to certain conditions including, but not limited to, the receipt of all necessary regulatory and other approvals including the acceptance of the TSX Venture Exchange.
The Offering will be made way of private placement in each of the provinces of Canada pursuant to applicable exemptions from the prospectus requirements and, in the case of the Offered Common Shares, such other jurisdictions, in each case in accordance with all applicable laws, provided that no prospectus, registration statement or other similar document is required to be filed in such jurisdiction. The securities issued under the Offering will be subject to a four month hold period under applicable Canadian securities laws.
The securities offered have not been, nor will they be, registered under the United States Securities Act of 1933, as amended, or any state securities law, and may not be offered, sold or delivered, directly or indirectly, within the United States, or to or for the account or benefit of U.S. persons, absent registration or an exemption from such registration requirements. This news release does not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of securities in any state in the United States in which such offer, solicitation or sale would be unlawful.
About Doré Copper Mining Corp.
Doré Copper Mining Corp. is a copper-gold explorer and developer in the Chibougamau area of Québec, Canada. The Corporation is focused on implementing its hub-and-spoke development strategy by advancing its key high-grade copper-gold brownfield projects towards a restart of operations.
The Corporation has consolidated a large land package in the prolific Lac Dore/Chibougamau and Joe Mann mining camps that has historically produced 1.6 B lbs of copper and 4.4 M oz of gold. The land package includes 13 former producing mines, deposits and resource target areas within a 60-kilometre radius of the Corporation’s 2,700 tpd mill (Copper Rand Mill).
Doré Copper plans to deliver a preliminary economic assessment (PEA) of its hub-and-spoke model in late 2021. Currently, the Corporation is completing a 16,500-metre drilling program at its Corner Bay (Cu-Au) project which will lead to an updated mineral resource estimate for mid-2021. In addition, Doré Copper is expected to have a maiden mineral resource estimate for the former producing Joe Mann mine (Au-Cu) by end of June 2021.
For further information, please visit the Corporation’s website at www.dorecopper.com or refer to Doré Copper’s SEDAR filings at www.sedar.com or contact:
Cautionary Note Regarding Forward-Looking Statements
This news release includes certain “forward-looking statements” under applicable Canadian securities legislation. Forward-looking statements include predictions, projections and forecasts and are often, but not always, identified by the use of words such as “seek”, “anticipate”, “believe”, “plan”, “estimate”, “forecast”, “expect”, “potential”, “project”, “target”, “schedule”, “budget” and “intend” and statements that an event or result “may”, “will”, “should”, “could” or “might” occur or be achieved and other similar expressions and includes the negatives thereof. All statements other than statements of historical fact included in this release, including, without limitation, statements regarding the timing and ability of the Corporation to receive necessary regulatory approvals, and the plans, operations and prospects of the Corporation and its properties are forward-looking statements. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties and other factors which may cause actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to, actual exploration results, changes in project parameters as plans continue to be refined, future metal prices, availability of capital and financing on acceptable terms, general economic, market or business conditions, uninsured risks, regulatory changes, delays or inability to receive required regulatory approvals, health emergencies, pandemics and other exploration or other risks detailed herein and from time to time in the filings made by the Corporation with securities regulators. Although the Corporation has attempted to identify important factors that could cause actual actions, events or results to differ from those described in forward-looking statements, there may be other factors that cause such actions, events or results to differ materially from those anticipated. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Corporation disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
Neither 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 news release.
- 2021-09-10 Doré Copper files technical report for Joe Mann
- 2021-08-19 Doré Copper Announces New Independent director
- 2021-07-28 Doré Copper announces its initial mineral resource at Joe Mann
- 2021-07-07 Doré Copper intersects 6.8 meters at 3.67% copper and 0.26 g/t gold at Corner Bay – Continues to expand deposit
- 2021-06-11 Doré Copper announces closing of C$14.6 million bought deal private placement of common shares and flow-through shares including full exercise of underwriters’ option
- 2021-06-01 Doré Copper strengthens its management team with the appointment of Steve Simard as project director
- 2021-05-18 Doré Copper announces C$13 million bought deal private placement of common shares and flow-through shares
- 2021-05-17 Doré Copper intersects 5.5 meters at 3.46% Copper and 0.25 g/t Gold at Corner Bay – extending deposit along strike by 200 metres
- 2021-05-11 Doré Copper completes option agreement for 100% interest in Cornerback – adds 2,100 hectares of land surrounding Corner Bay high-grade copper-gold deposit
- 2021-04-23 Doré Copper posts Q4 and fiscal year 2020 financial statements and MD&A on Sedar and grants stock options
- 2021-04-22 Doré Copper upgrades to OTCQX
- 2021-04-20 Doré Copper to webcast live on April 22 at Virtual Investor Conference: Critical and Strategic Minerals Investment Opportunities in the province of Quebec
- 2021-04-08 Doré Copper provides exploration and development update of its high-grade copper-gold properties in Chibougamau, Quebec
- 2021-03-22 Doré Copper consolidates and options the high-grade Norbeau Gold properties in the Chibougamau mining camp, Quebec