Vancouver, British Columbia (FSCwire) - Canyon Copper Corp. ("Canyon") (TSX-V: CNC) is pleased to announce that it has entered into an option agreement ("Option Agreement") with 2333382 Ontario Inc. a private company, to earn up to a 100% interest in the Munro Warden Copper Nickel Cobalt Property (the “Property” or “Munro Warden”) located approximately 85 kilometres east of Timmins Ontario and 55 kilometres north of Kirkland Lake Ontario.
The Property consists of 9 mining leases and 6 mineral claims totalling 717 hectares located in the eastern part of the Kidd-Munro assemblage of the Abitibi Greenstone Belt. The Abitibi greenstone belt is one of the largest, best-preserved, and mineral-rich greenstone belts in the world. The Kidd-Munro sequence hosts a number of mineral deposits, including the world-class Kidd Creek volcanogenic massive sulphide deposit, the Dundonald and Alexo komatiitic nickel deposits and several major lode gold deposits. In Munro Township, copper and zinc- bearing massive sulphides have been mined at the Potter Mine and the Potter-Doal Mine, gold at the Croesus Mine and asbestos at the Munro Mine.
Option Agreement Terms
Under the terms of the Option Agreement, Canyon has the option to acquire up to a 100% interest in Munro Warden by making the following cash payments, share issuances and exploration expenditures:
1) Cash payment of $5,000 and issuing 100,000 shares within 20 days of the date of TSX Venture Exchange (the “TSXV”) acceptance.
2) Canyon will earn a 51% interest upon completing the following
- Cash payment of $20,000 and issuing 150,000 shares before June 30, 2018
- Cash payment of $25,000 and issuing 150,000 shares before December 31, 2019
- Incurring exploration expenditures of $500,000 before December 31, 2019
3) Canyon will earn a 75% interest upon completing the following
- Cash payment of $50,000 and issuing 200,000 shares before December 31, 2020
- Cash payment of $50,000 and issuing 200,000 shares before December 31, 2021
- Incurring additional exploration expenditures of $1,000,000 before December 31, 2021, for a cumulative total of $1,500,000 of exploration expenditures.
4) Canyon will earn a 100% interest upon completing the following
- Cash payment of $100,000 and issuing 200,000 shares before December 31, 2023
- Incurring additional exploration expenditures of $1,000,000 before December 31, 2023, for a cumulative total of $2,500,000 of exploration expenditures.
Canyon can at its option accelerate the cash payments and common shares issuances described above. Any excess exploration expenditures incurred on the Property within an earn-in time period will be credited to successive earn-in time periods. All common share issuances by Canyon will be subject to a 4-month hold period as per Canadian securities law.
Under the terms of the Option Agreement, Canyon will pay a 2.0 % Net Smelter Return royalty (the “NSR”) to 2333382 Ontario Inc. on commencement of commercial production. Canyon will have the right, at any time, to purchase 1.0 % of the 2.0% NSR for $1,000,000.
The Option Agreement and the transactions contemplated are subject to acceptance of the TSXV.
Background information from Ontario Mineral Deposit Inventory database
Deposit: MDI42A09NE00098: Mineralization Comments
“18-Feb-97 (C Salo) - Disseminated, blebby, veinlet controlled, and massive magnetite, pyrrhotite, and chalcopyrite mineralization occurs within the variably sheared and serpentinized peridotitic base of the discordant ultramafic body which hosts the serpentine industrial filler mineralization of the Hedman Mine (described in the report for the Hedman Mine). This sulfide mineralization is reported (assessment files, Resident Geologist's Office, Kirkland Lake) to assay as much as 1.7% of nickel, 1.77% of copper, and 0.14% of cobalt where it has been sampled via Dyman Prospecting Syndicate diamond drilling in 1956 (drill hole nos. B-13 through B-19 and B-21) and from surface pits along a strike length of 2,000 feet.”
Deposit: MDI42A09SE00160: Mineralization Comments
“18-Feb-97 (C Salo) - Diamond drilling on or near claim no. 53321 (the southeast quarter of the north half of lot 6, concession VI, Munro Township) at an unspecified date by the Dyman Prospecting Syndicate (hole nos. SB-1, SB-2, and SB-3, totalling 894.5 feet) is reported (assessment files) to have intersected variably calcite altered graphitic rhyolite hosting massive and disseminated chalcopyrite and sulfide mineralization. This drilling is reported (assessment files) to have yielded copper assays as high as 4.9% and cobalt assays as high as 0.27%. The sulfide mineralization sampled by the drilling is likely from the same or a stratigraphically closely related sulfidic horizon which occurs about 850 m west northwest of the occurrence at the Potterdoal deposit (described elsewhere in this compendium). Shklanka (1969) reported that pits excavated in rhyolite within claim no. 53314 (the northeast quarter of the north half of lot 6 concession VI, Munro Township) also explored pyrite and chalcopyrite mineralization, but no assays from this area are provided by him.”
The above technical information has been extracted from Ontario Mineral Deposit Inventory (MDI) deposit entries MDI42A09NE00098 and MDI42A09SE00160. The MDI provides an overview of over 19,000 mineral occurrences in the province of Ontario.
Planned Exploration
Canyon plans to begin exploration in the near term with a detailed compilation of existing information followed by prospecting and geological mapping during the 2017 summer field season.
Qualified Person
Stephen Wallace PGeo is the Company's designated Qualified Person within the meaning of National Instrument 43-101 and has reviewed and approved the technical information contained in this news release.
