Cascadero Copper Corporation (TSXV: CCD) (the "Company") announces that it has executed a binding term sheet whereby InCoR Holdings Plc. ("InCoR"), a closely held company at arm's length to the Company, will acquire a 30% interest in Cascadero Minerals Corporation ("CMC"), a subsidiary of the Company that holds title to the Company's properties for US$1.5 million (the "Transaction"). The purchase price is payable in 3 instalments commencing on January 31, 2019.
CMC is held as to 70% by the Company and 30% by Regberg Ltd. and on closing of the Transaction ("Closing") the Company will hold 40% and InCoR and Regberg shall each own 30%. The parties will enter into a shareholder's agreement, with the Company as operator, which will provide for a pro-rata sharing of the budgeted costs of the exploration and development of the properties. No finder's fee is payable on the Transaction.
In connection with the Transaction InCoR has agreed to subscribe for a private placement consisting of 15 million units of the Company to be comprised of a share and a warrant priced in accordance with the policies of the TSX Venture Exchange. Securities issued in the private placement will be subject to a four month hold period. Concurrent with the Closing of the Transaction it is also intended that a new President and CEO of the Company will be appointed, and the board of the Company will be reconfigured in a manner mutually acceptable to the Company and InCoR.
The Transaction and the private placement are subject to necessary regulatory approvals, and to the negotiation, execution and delivery of definitive legal documents and completion by InCoR of a satisfactory due diligence review of the Company and its assets. The Closing of the Transaction and the private placement is expected to be on or before January 31, 2019. InCoR has agreed to a down payment on the Transaction of US$190,000 (CAD$250,000), which is payable within 30 days and is deductible from the first installment. The deposit is refundable if the Transaction does not close, but only in the event of the failure to satisfy customary conditions precedent. The Company will use the proceeds received from InCoR for general corporate purposes, working capital and to restart exploration in Argentina early in 2019.
The property portfolio remains intact, and the initial focus of exploration and development activities will likely be the Taron group of properties, but the La Sarita Este property is also under consideration. Brian Causey, Chairman of Cascadero states "Cascadero management is very excited about this arrangement with InCoR, and we view InCoR as a long-term partner for the development of its property portfolio. Our exploration plans are to develop one property at a time, with an expectation for working towards sufficient property data to support a NI 43-101 study".
InCoR is a venture capital investor in the natural resources sector focused on development and commercialization of minerals processing technologies. Its business model is to pair investment in minerals processing technologies with investment in mineral resources and processing facilities. InCoR's key management are experienced industry professionals in the field of hydrometallurgy, geology, design engineering and construction, investment banking and private equity. InCoR applies hydrometallurgical technologies to produce metals products having environmental benefits over alternative pyrometallurgical processing. Environmental sustainability is a key tenet of InCoR's investment philosophy. InCoR holds interests in base metals, as follows: Lead - processing technologies for recovery of lead from lead oxide and lead sulphide material utilising methane sulfonic acid as a leaching agent, paired with its investment in LeadFX Inc.; Copper - processing technologies for leaching copper from copper concentrates containing copper sulphides including chalcopyrite concentrates and concentrates containing arsenic and antimony compounds, together known as the GALVANOXTM process; Nickel - processing technology for recovery of nickel from nickel saprolite ore, known as the Starved Acid Leaching technology or SALT; and Zinc - processing technology for recovery of high purity zinc oxide from zinc ore. In rare and strategic metals, InCoR has investments in: Indium - recovery of indium (and silver, gold and other precious and base metals) from complex oxide and sulphide ores; and Rare Earths - recovery of high purity mixed rare earth oxide concentrates via its investment in Search Minerals Inc. InCoR is an acronym for International Commodities and Restructuring.
About Cascadero Cascadero
Copper Corporation holds an extensive portfolio of mineral properties in Argentina, including 32 tenements, which in the aggregate equates to 46,000 hectares of highly prospective geology. The current property portfolio has taken 10 years to assemble and it is squarely focused on Precious Metals including Gold, Silver, Copper and a large-scale Cesium showing. The properties are mainly in Salta Province in Northwestern Argentina.
Cascadero Copper Corporation
For further information contact Bill McWilliam 778 999 3273; email@example.com
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 release.