(TheNewswire)
Vancouver, BC / TheNewswire / June 29, 2017 - Lorraine Copper Corp. ("Lorraine Copper) (TSX-V: LLC) is pleased to announce that a letter of intent has been signed with 1124245 B.C. Ltd. whereby 1124245 B.C. Ltd. will have an option to purchase a 100% interest, subject to certain royalties and terms, in the Lustdust mineral property located in the Omineca Mining Division approximately 140 km northwest of Fort St. James, British Columbia.
To earn its interest in Lustdust, 1124245 B.C. Ltd. will, on signing a definitive agreement, make a $50,000 cash payment to Lorraine Copper and issue 500,000 shares of 1124245 B.C. Ltd. and will undertake a minimum $500,000 expenditure on the property by December 31, 2017. Thereafter 1124245 B.C. Ltd. will make annual cash payments, share issuances and minimum annual property expenditures until a total of $6,000,000 has been spent on the property before December 31, 2021. At that point 1124245 B.C. Ltd. will issue sufficient shares to Lorraine Copper such that Lorraine will hold a 30% interest in 1124245 B.C. Ltd. Lorraine Copper will also retain a 2% NSR on precious metals and a 1% NSR on base metals which may be bought down by one-half each by the payment of $1,500,000 per royalty to Lorraine Copper.
1124245 B.C. Ltd. is a private sole purpose company and member of the Oxygen Capital Group of companies. 1124245 B.C. Ltd. was established and will be capitalized by Oxygen Capital partners for the purposes of optioning and advancing Lustdust. Planning is underway to properly compile technical data with a view to initiating a field program as soon as possible. Lorraine Copper management are very pleased to be able to tap the dynamic resources and exploration talent of the Oxygen Capital Group (www.oxygencapitalcorp.com).
Lustdust is a carbonate replacement deposit (CRD) and related porphyry system that includes gold-silver-zinc mantos, gold silver rich copper skarn, limestone hosted gold, porphyry Cu-Mo (Au) and precious metal quartz-vein mineralization. In excess of 334 drill holes totalling over 74,000 meters have been completed. An initial resource was published in 2010 (R. Simpson, P.Geo: Technical Report; filed by Alpha Gold, now ALQ Resources), on a small area of the mineralized system known as the Copper Canyon Skarn. At a 1.5% Cu cut off the indicated resource is 910,000 tonnes grading 1.56% Cu, 1.68 g/t Au and 39.3 g/t Ag and the inferred resource is a further 1.96 million tonnes grading 1.34% Cu, 1.72 g/t Au and 32.1 g/t Ag. Geophysical surveys indicate a good potential for discovering additional skarn mineralization and magnetic and soil geochemical sampling suggest that the mineralizing system extends well beyond the known mineralized zones. The prospective area is in excess of 6 km in length and 4-5 km wide.
The Lustdust Property lies along the western border of Serengeti Resources Inc.'s Kwanika Creek copper-gold property (recently published a PEA). and is approximately 30 km south of Lorraine Copper's 49% owned Lorraine Property which is a joint venture with Teck Resources Limited.
G. L. Garratt, P.Geo., is the qualified person, as defined by NI 43-101, who has reviewed and takes responsibility for this news release.
Glen Garratt, P.Geo.
Glen Garratt, P.Geo., VP, Director
Lorraine Copper Corp.
Contact : Telephone : 604-681-7913; Toll Free : 888-656-6611
About Lorraine Copper Lorraine Copper holds is a Canadian mineral exploration company that is acquiring and advancing copper, gold and molybdenum projects at intermediate to advanced stages that hold significant resources. Lorraine Copper currently owns three properties all of which have defined resources: Lorraine, OK and Lustdust. For more information please visit the Company's website at www.lorrainecopper.com.
The TSX - Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
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