Copper One Inc. has acquired an option to purchase a 100% interest in the Las Morras gold project from Emerita Resources Corp. pursuant to a binding letter agreement dated November 10, 2017 between Copper One and Emerita. The Project is located in the Extremadura region of Spain.
Pursuant to the Agreement, Emerita has granted to Copper One an option (the "Option") to acquire a 100% interest in the Project. As consideration for the Option, Copper One has paid $25,000 to Emerita in cash and shall pay an additional $75,000 in cash to Emerita on or before January 10, 2018.
In order to exercise the Option and acquire a 100% interest in the Project, Copper One shall:
- pay $100,000 in cash to Emerita on or before the date that is 24 months after the execution of the Agreement;
- spend $500,000 on exploration activities on the Project on or before the date that is 24 months after the execution of the Agreement;
- pay $250,000 in cash to Emerita on or before the date that is 36 months after the execution of the Agreement;
- spend $1,500,000 on exploration activities on the Project on or before the date that is 48 months after the execution of the Agreement; and
- grant to Emerita a 2% net smelter returns royalty on the Project (collectively, the "Consideration").
Emerita will hold the Project in trust for Copper One until Copper One exercises the Option and the Project is assigned and transferred to Copper. If Copper One does not exercise the Option, Emerita will retain the Project. During the option period, Copper One will be the operator of the Project.
The Transaction is an arm's length transaction and Copper One is not paying any finder's fees in connection therewith.
The Las Morras gold project is comprised of 230 claims, totaling approximately 7,000 hectares and is located in the eastern part of the Badajoz province.
The underlying geology of the Las Morras project comprises Pre-Cambrian metasedimentary rocks that are structurally juxtaposed against younger Palaeozoic metasedimentary rocks. Gold anomalies appear to be associated with shear zones within the Precambrian rocks and Company geologists are exploring the Las Morras area for primary gold deposits similar to those that exist elsewhere in Spain within similar geological and structural settings.
Emerita has filed on SEDAR a NI 43-101 technical report describing the Project entitled "Technical Report on the Las Morras Exploration Concession, Extremadura Region, Spain" and dated as of October 25, 2012.
Damian Lopez has resigned as Corporate Secretary of Copper One, effective immediately. Copper One would like to thank Mr. Lopez for his contribution to the Company.