Granite Creek Copper Ltd., a Canadian exploration company, has reported that its formerly announced acquisition of 26,146,233 common shares of Copper North Mining Corp. has been successfully completed.
The common shares represent about 30% of the outstanding shares of Copper North Mining Corp. for 10,529,663 common shares of Granite Creek Copper Ltd. (at an estimated price of $0.06425 for each share, or $670,530.85 in total).
Before this transaction, Granite Creek Copper Ltd. did not own any common shares of Copper North Mining Corp.
We are pleased to have completed the acquisition which we believe will be accretive for both companies due to their adjoining claim blocks which share many synergies, including common geology, infrastructure and expanded exploration potential.
Tim Johnson, CEO, Granite Creek Copper Ltd.
Following the closure of the acquisition, the British Columbia Supreme Court made a decisive ruling that a temporary injunction acquired by Copper North Mining Corp. will be revoked without further notice.
Due to the ruling, Granite Creek Copper Ltd. believes that simultaneous civil action undertaken by Copper North Mining Corp. to seek damages for an alleged breach of an earlier standstill provision must be withdrawn. But in case this is not withdrawn, Granite Creek Copper Ltd. believes that the civil action, just like the injunction, is totally without merit and that it will defend itself strongly.
Granite Creek Copper Ltd. has filed a response and counterclaim seeking damages against Copper North Mining Corp. for breach of contract.
Granite Creek Copper Ltd. will assess its investment on an ongoing basis and, based on factors that it deems applicable, from time to time, it may, amongst other things, conditional to relevant laws: (i) procure more securities of Copper North Mining Corp. via private agreements, market transactions, or otherwise; (ii) discard a few or all the shares of Copper North Mining Corp., whether via private agreements, market transactions, or otherwise; (iii) engage in talks with the representatives of Copper North Mining Corp. regarding, among other things, the strategic policies, business plans, and the composition of the board and management of Copper North Mining Corp.; (iv) seek to hire nominees to the board of Copper North Mining Corp. or otherwise impact the composition of the board and management; (v) seek a joint venture, merger, acquisition, or other corporate transaction that involve Copper North Mining Corp. and/or its shareholders; (vi) take such other actions with regard to Copper North Mining Corp. as Granite Creek Copper Ltd. may, from time to time, deem appropriate; (vii) discuss with other industry participants, shareholders, and other involved parties regarding Copper North Mining Corp.; and (viii) alter its intentions and plans from time to time or at any time, as it deems appropriate.
Granite Creek Copper Ltd. depended on the “private agreement exemption” of National Instrument 62-104 Take-Over Bids and Issuer Bids (NI 62-104). The company is eligible to apply for the exemption because (1) the purchased shares were procured from only five vendors and (2) the price of the consideration paid for the purchased shares was no higher than 115% of the “market price” of the acquired shares (established according to NI 62-104).
Granite Creek Copper Ltd. will file an initial warning report (the “Report”) according to National Instrument 62-103–The Early Warning System and Related Take-Over Bid and Insider Reporting Requirements on SEDAR under the profile for Copper North Mining Corp.