Universal Copper arranges $1.5M private placement

Jan 25, 2023

2023-01-25 10:39 ET – News Release

Mr. Clive Massey reports

UNIVERSAL COPPER ANNOUNCES NON-BROKERED PRIVATE PLACEMENT OF UNITS

Universal Copper Ltd. will proceed with a non-brokered private placement of up to 42,857,143 units of the company at a price per unit of 3.5 cents for gross proceeds of up to $1.5-million.

Each unit will consist of one common share and one common share purchase warrant. Each warrant entitles the holder to purchase one common share at six cents for a period of 24 months following the date of issuance. The company may pay a finder’s fee on all or a portion of the private placement, in accordance with the policies of the TSX Venture Exchange.

The private placement is subject to, among other things, TSX-V acceptance, and the resulting securities proposed for issuance will be subject to a four-month-and-one-day hold period from the date of closing, per applicable regulatory requirements. The proceeds from the private placement will be used for financing existing operations and future geological work on the Poplar project, as follows: 15 per cent for general and administrative expenses; 68 per cent for exploration and property maintenance; and 17 per cent for existing payables.

Related parties of the company may participate in the private placement, although the extent of their participation is undetermined at this time. To the extent the private placement constitutes a related party transaction within the meaning of Multilateral Instrument 61-101 — Protection of Minority Security Holders in Special Transactions, the issuance to related parties will be exempt from the formal valuation requirement of MI 61-101 by virtue of the exemption contained in Section 5.5(b), as the company’s shares are not listed on a specified market. The issuance to related parties is expected to be exempt from the minority shareholder approval requirements of MI 61-101 by virtue of the exemption contained in Section 5.7(a) of MI 61-101, as the fair market value of the consideration of the securities issued to the related parties is not expected to exceed 25 per cent of the company’s market capitalization.

About Universal Copper Ltd.

Universal Copper is a Canadian-based copper exploration company focused on the acquisition and exploration of copper properties. The company’s management team has many years of experience in exploration, finance and efficient public-company management. Universal’s current focus is advancing the Poplar copper project, one of the most advanced preproduction copper projects in British Columbia with a historical National Instrument 43-101 resource.

We seek Safe Harbor.

https://www.universalcopper.com/