Kutcho Copper Corp. (TSXV: KC) (OTC: KCCFF) (“Kutcho Copper” or the “Company”) today announced that it has arranged a non-brokered private placement (the “Private Placement”) for total gross proceeds of C$2,000,000. The Private Placement will consist of 10,000,000 units at a price of $0.20 per unit (each a “Unit”). Each Unit is comprised of one common share of the Company and one-half of one transferable common share purchase warrant (each whole being a “Warrant”). Each Warrant entitles the holder to acquire one common share of the Company for a period of 2 years from closing at a price of $0.30.
Proceeds of the Private Placement will be used to commence the Company’s feasibility study on the Kutcho Copper project and for general corporate and working capital purposes. Closing of the Private Placement is subject to receipt of TSX Venture Exchange approval. The Company may pay finder’s fees as permitted by TSXV policy.
“Kutcho Copper continues to advance and de-risk its high-grade copper development project. Proceeds from this financing will allow the Company to initiate this next crucial milestone in the continued development of the Kutcho Copper Project as we progress the project towards production,” said Vince Sorace, President and CEO of Kutcho Copper Corp. “The Kutcho Copper project is uniquely positioned with a clear path through feasibility, permitting and ultimately production, and we are excited to commence this next leg of our journey.”
The Company also announces that Wheaton Precious Metals Corp. (“Wheaton”) has agreed to amend its definitive documentation related to its previous convertible debenture investment in the Company. Under the amendment, semi-annual interest payments that are otherwise owing by Kutcho Copper on December 31, 2020 and June 30, 2021 will be deferred until December 31, 2021. Additionally, Wheaton has also agreed that the maturity date of the non-revolving credit facility of up to $1,300,000 provided by Wheaton will be extended to December 31, 2021. These amendments are subject to customary conditions, including completion of the Private Placement.
The Company also announces the grant of an aggregate of 1,475,000 stock options to consultants, directors and senior officers of the Company, with each option exercisable at a price of $0.25 per share for a period of five years. Certain of the stock options may be subject to vesting requirements as determined by the Board of Directors. The options have been granted in accordance with the terms of the Company’s current stock option plan.