Business
Copper Lake Closes Acquisition to Increase Its Interest to 68.75% at Its Flagship VMS Copper-Zinc-Silver-Gold Marshall Lake Property
TORONTO, ONTARIO--(Marketwired - Sept. 29, 2016) - Copper Lake Resources Ltd. (TSX VENTURE:CPL)(FRANKFURT:W0I) ("Copper Lake" or the "Company") is pleased to an
About this update from Copper Lake Resources Ltd.
[{"type":"text","content":"TORONTO, ONTARIO--(Marketwired - Sept. 29, 2016) - Copper Lake Resources Ltd. (TSX VENTURE:CPL)(FRANKFURT:W0I) (\"Copper Lake\" or the \"Company\") is pleased to announce that it has now closed the transaction to acquire the 31.25% interest in the Marshall Lake property held by Marshall Lake Mining Limited (\"MLMP\"), a privately held UK based company. The agreement to acquire the interest was previously announced on May 5, 2016. The transaction was approved by shareholders on July 26, 2016 and received approval from the TSX Venture Exchange on September 22, 2016. This acquisition now gives Copper Lake a 68.75% interest in the Marshall Lake property. In consideration, the Company will issue 34,422,938 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 $2,071,000. The common shares and convertible debentures issuable under the acquisition will ultimately be distributed directly to MLMP's shareholders following the liquidation of MLMP in the coming months. On distribution of those share all MLMP shareholders will be subject to an initial six-month hold with Paul Mcgroary the largest MLMP shareholder subject to a further phased hold over twenty-four months given he will hold over 10% of the outstanding Copper Lake shares. Dr. Jeffery Malaihollo, FAus IMM and Paul Mcgroary, who are directors of MLMP, will now join the Board following their approval at the Copper Lake Annual General and Special Shareholders meeting held on July 26, 2016. Paul Mcgroary, MLMP's Managing Director, commented: \"MLMP is delighted to assist Copper Lake in achieving its long held goal of starting the process of consolidating its flagship VMS copper, zinc, silver and gold Marshall Lake Property, and we look forward to assisting the project going forward under the Company's new \"Dundee\" led management team. Since 2006 the Marshall Lake property has been a rich source of individual copper and zinc discoveries and under the new team we expect that the project will devel...