Tickers: XTSX:LLC
Tags: Mining
Vancouver, BC / TheNewswire / Sept 27, 2016 - Lorraine Copper Corp. (TSX-V: LLC) ("Lorraine Copper") announces that it has completed a purchase agreement with Prophecy Development Corp. (TSX-V: PYC) ("Prophecy") concerning the Ok (Okeover) copper-molybdenum project located on the southwest coast of BC. Lorraine Copper has issued 2.2 million common shares of Lorraine Copper to Prophecy and will assume Prophecy's debt obligation to Eastfield Resources Ltd. ($19,078) under the parties' former joint venture agreement to acquire Prophecy's 60% interest in the project. Prophecy will additionally be entitled to receive 30 per cent of any payments or proceeds resulting from third party agreements related to the project entered into within a period of five years (capped at $1-million payable to Prophecy).
The OK project consists of 17 mineral claims dating to 1966 encompassing 6,313 hectares. Central to the claims is a north-south-trending zone of porphyry mineralization extending approximately 6.0 kilometres. One of these zones, the North Lake zone, hosts an NI 43-101-compliant inferred mineral resource of 86.8 million tonnes grading 0.31 per cent copper and 0.009 per cent molybdenum (0.014% MoS2) (N.C. Carter, PEng, 2006, filed on SEDAR and available for review under Lorraine's SEDAR profile).
The completion of the agreement with Prophecy increases Lorraine Copper's portfolio of assets to three projects consisting of:
A 100% interest in the Lustdust gold-silver-copper-zinc-lead project, Omineca region, BC (acquired earlier in September, 2016)
A 100% interest in The OK copper-molybdenum project, Southcoast, BC
A 49% interest in the Lorraine copper-gold project (Teck Resources Ltd., 51%), Omineca region, BC.
Lorraine Copper Corp. ("Lorraine Copper") is presently negotiating subscriptions for a private placement agreement, subject to regulatory approval, for the sale of up to 5,000,000 units (each unit comprises one common share and one share purchase warrant) at a price of $0.06 per unit. Each warrant provides for the purchase of an additional common share at a price of $0.10 per share for two years from the date of regulatory approval. The shares issued pursuant to this private placement, and any warrants exercised there from, shall be subject to a four-month hold period. Total gross proceeds of the offering will be $300,000. The proceeds of the offering shall be applied to general working capital. The company shall pay a 7% finder's fee (payable in shares) with respect to the placement. This offering is subject to approval of the TSX Venture Exchange.
J.W. (Bill) Morton in the "Qualified Person" pursuant to the requirements of NA43-101 who takes responsibility for the information provided in this news release.
J.W. (Bill) Morton, P.Geo.
President and CEO
Lorraine Copper Corp.
Contact:
Phone: (604) 681-7913, Toll Free: 888-656-6611;
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.
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