Canada Carbon Enters Into Agreement to Sell Red Chris Royalty to VOX Royalty Corp
VANCOUVER, British Columbia, July 29, 2020 (GLOBE NEWSWIRE) -- Canada Carbon Inc. (the “Company”) (TSX-V: CCB) is pleased to announce that it has entered into a binding agreement with SilverStream SEZC, a subsidiary of Vox Royalty Corp. (TSX-V:VOX), pursuant to which the Company will sell its royalty on the Red Chris South Project (“Red Chris”), which is located approximately 5km from the Red Chris gold-copper mine, operated in 70/30 joint venture by Newcrest Mining Limited (“Newcrest”) (ASX:NCM) and Imperial Metals Corp. (TSX: III) for cash consideration of C$225,000.
The Red Chris royalty is a 1.5% net smelter return royalty in respect of all products mined from the property that was created when the Company sold the project claims to Red Chris Development Company Ltd on May 27th, 2013. The royalty has a partial 1.0% buyback right for C$1 million and a right of first refusal in favour of the operator (“ROFR”).
Executive Chairman and CEO R. Bruce Duncan remarked, “This sale of a non-core royalty unlocks additional cash and allows us to focus on Canada Carbon’s core business of advancing the Miller Project toward production in a manner that will minimize environmental impact. We appreciate the efficiency and professionalism of the Vox team and we look forward to reaching an outcome on the ROFR with Newcrest; then promptly completing the royalty sale.”
The transaction remains subject to satisfaction of customary conditions including ROFR waiver or acceptance by the operator, approval of the TSX Venture Exchange and execution of standard transaction documentation.
CANADA CARBON INC.
“R. Bruce Duncan”
CEO and Director
Contact Information
E-mail inquiries: info@canadacarbon.com
P: (416) 903-8408
“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 release.”
FORWARD LOOKING STATEMENTS: This news release contains forward-looking statements, which relate to future events or future performance and reflect management’s current expectations and assumptions. Such forward-looking statements reflect management’s current beliefs and are based on assumptions made by and information currently available to the Company. Investors are cautioned that these forward looking statements are neither promises nor guarantees, and are subject to risks and uncertainties that may cause future results to differ materially from those expected. These forward-looking statements are made as of the date hereof and, except as required under applicable securities legislation, the Company does not assume any obligation to update or revise them to reflect new events or circumstances. All of the forward-looking statements made in this press release are qualified by these cautionary statements and by those made in our filings with SEDAR in Canada (available at www.sedar.com).
