Canadian Critical Minerals Receives Offer to Purchase Interest in Thierry Mine Project
Rhea-AI Summary
Canadian Critical Minerals Inc. (CCMI) has received an offer from QC Copper and Gold to purchase all outstanding shares of Cuprum Corp. in an all-share deal. CCMI currently owns 29.9% of Cuprum, which owns 100% of the Thierry Mine project. Following the proposed transaction, CCMI's ownership of QC Copper would be 10.4%.
Key terms of the acquisition include:
- QC Copper will issue 1.1538 common shares for every Cuprum common share
- A total of 82.76 million QC Copper shares will be issued
- CCMI will hold 26.77 million shares in QC Copper, valued at $3.48 million
The acquisition, if completed, will allow CCMI to focus on its Bull River Mine while gaining diversification through Opemiska and retaining interest in Thierry. Shares will be held in escrow for 18 months, with 10% free trading on closing. The transaction is subject to TSXV Exchange and QC Copper's shareholder approval, with expected closing by the end of December 2024.
Positive
- CCMI will gain diversification through QC Copper's Opemiska project while retaining interest in Thierry
- CCMI will receive 26.77 million shares in QC Copper with an implied value of $3.48 million
- The acquisition provides CCMI with liquidity for their current investment in Cuprum
Negative
- CCMI's direct ownership in the Thierry Mine project will be reduced
- The value of CCMI's new shares in QC Copper is subject to market fluctuations
- CCMI's shares in QC Copper will be subject to an 18-month escrow period
News Market Reaction
On the day this news was published, RIINF declined 1.60%, reflecting a mild negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
Calgary, Alberta--(Newsfile Corp. - October 1, 2024) - Canadian Critical Minerals Inc. (TSXV: CCMI) (OTCQB: RIINF) ("CCMI" or the "Company") hereby reports that QC Copper and Gold (TSXV: QCCU) (QCCUF) ("QC Copper") has made an offer to purchase all the outstanding shares of Cuprum Corp. ("Cuprum") in an all-share deal (the "Acquisition"). Cuprum is a private company (formerly Pickle Lake Minerals Inc.) which owns
Terms of the Acquisition
QC Copper will issue all shareholders of Cuprum 1.1538 common shares of QC Copper for every Cuprum common share, based on QC Copper's share price of
QC Copper is currently advancing its
The Acquisition, if completed, will allow CCMI to remain focused on its flagship Bull River Mine in British Columbia. CCMI will gain diversification with the addition of Opemiska while retaining a significant interest in Thierry. Given that QC Copper is publicly traded, CCMI will be provided with liquidity for their current investment in Cuprum. Shares will be held in escrow for a period of 18 months with
Cuprum's Board of Directors formed a Special Committee to evaluate the transaction, ensuring the transaction serves the best interests of all shareholders, including CCMI. Independent financial advisory firm Working Capital Corporation provided a fairness opinion, confirming the transaction is fair, from a financial point of view to the shareholders of Cuprum.
The transaction is subject to approval from the TSXV Exchange and QC Copper's disinterested shareholders. Subject to these approvals, closing is expected by the end of December 2024.
About Canadian Critical Minerals Inc.
CCMI is a mining company primarily focused on two near-term copper production assets in Canada. CCMI's main asset is the
Contact Information
Canadian Critical Minerals Inc.
Ian Berzins
President & Chief Executive Officer
M: +1-403-512-8202
E: iberzins@canadiancriticalmineralsinc.com
Website: www.canadiancriticalmineralsinc.com
Caution Regarding Forward-Looking Information
This news release includes certain information that may constitute "forward-looking information" under applicable Canadian securities legislation. Forward-looking information includes, but is not limited to, statements about strategic plans, future work programs and objectives and expected results from such work programs. Forward-looking information necessarily involve known and unknown risks, including, without limitation, risks associated with general economic conditions; inability to access sufficient capital from internal and external sources, and/or inability to access sufficient capital on favourable terms; and other risks.
Forward-looking information is 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 the actual results and future events to differ materially from those expressed or implied by such forward-looking information and the risks identified in the Company's continuous disclosure record. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. All forward-looking information contained in this news release is given as of the date hereof and is based upon the opinions and estimates of management and information available to management as at the date hereof. The Company disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by law.
Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this new release.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/225303
FAQ
What is the offer QC Copper made to purchase Cuprum Corp's shares?
How many shares of QC Copper will CCMI (RIINF) receive in the proposed transaction?
When is the expected closing date for the acquisition of Cuprum Corp by QC Copper?
What will be CCMI's (RIINF) ownership percentage in QC Copper after the proposed transaction?
