Business
Copper Lake Announces Agreement to Acquire Additional Interest in Marshall Lake Property
TORONTO, ONTARIO--(Marketwired - May 5, 2016) - Copper Lake Resources Ltd. (TSX VENTURE:CPL)(FRANKFURT:W0I) ("Copper Lake" or the "Company") is pleased to annou
About this update from Copper Lake Resources Ltd.
[{"type":"text","content":"TORONTO, ONTARIO--(Marketwired - May 5, 2016) - Copper Lake Resources Ltd. (TSX VENTURE:CPL)(FRANKFURT:W0I) (\"Copper Lake\" or the \"Company\") is pleased to announce that it has reached an agreement to acquire the 31.25% interest in the Marshall Lake property currently held by Marshall Lake Mining Limited (\"MLMP\"), a privately held UK based company. This acquisition will give Copper Lake a 68.75% interest in the property. In consideration, the Company will issue a maximum of 34,268,738 common shares and a principal amount of $350,000 of 12% five year unsecured subordinated convertible debentures to MLMP, subject to customary closing adjustments. The debentures are convertible into units, comprised of one share and one warrant, at $0.055 per unit for the first year and $0.10 per unit thereafter. The warrants will have an exercise price equal to the conversion rate of the units when issued. The total consideration is valued at $2,063,000. The common shares and convertible debentures issuable under the acquisition will ultimately be distributed directly to MLMP's shareholders. All MLMP shareholders will be subject to an initial six-month hold, and any MLMP shareholder that holds more than 5% of the outstanding Copper Lake shares will be subject to an additional phased hold over twenty-four months. MLMP will also be entitled to nominate two individuals for election to the Company's board of directors, which will be expanded to five directors. The transaction is subject to, among other things, the Company receiving shareholder approval and TSX Venture Exchange approval. Terrence MacDonald, Interim CEO of the Company, said: \"The Board of Directors sees this acquisition as a significant milestone for the Company in that it now has a clear controlling position in our flagship Marshall Lake property, with the option to increase that to 75% over the next 14 months. \"A second benefit is that, following this 'merger of interests', Copper Lake will have a significant European shareholder base, and we believe an enhanced ability to access 'hard dollar' European financing for both the Marshall and Norton projects going forward. \"Lastly, it is worth noting that it was Marshall Lake Mining Limited who in 2005 funded the acquisition and early near surface drilling work on the Marshall project. This work led directly to the discoveries at S...