Kutcho Copper signs exploration agreement with Kaska Nation and provides corporate update
Kutcho Copper Corp. (TSXV: KC) (OTC: KCCFF) (“Kutcho Copper” or the “Company”) is pleased to provide an update on progress at its 100% owned Kutcho high grade copper zinc development project, which is located 100 km east of Dease Lake in Northern British Columbia.
Kaska Exploration Agreement
Kutcho and Kaska Nation (as represented by Dease River First Nation ("Kaska")) are pleased to announce that they have entered into an Exploration Agreement relating to the Kutcho Project.
This agreement sets out a framework in which Kutcho Copper and Kaska agree to work together in a spirit of partnership and cooperation to build a positive and mutually beneficial working relationship. Specific objectives of the agreement include:
- Establishing a co-operative and collaborative working arrangement between Kutcho Copper and Kaska;
- Promoting timely dialogue and communication to foster an open, direct and respectful relationship;
- Identifying employment and business opportunities for Kaska associated with the exploration activities;
- Enhancing Kaska’s capacity to participate in opportunities related to the exploration activities and baseline data collection; and
- Establishment of a Working Group.
Dease River First Nation Chief, Myles Manygreyhorses, commented: "We are pleased to sign this agreement on behalf of the Kaska Nation with Kutcho Copper as they help set the standard for how exploration should be conducted in Kaska territory. We look forward to working with Kutcho Copper to advance our people’s understanding of both the project’s potential impacts and benefits."
Kutcho Copper’s President and CEO, Vince Sorace, commented: "The signing of the Exploration Agreement with Kaska marks a significant milestone in the evolution of the Kutcho Project. This agreement confirms Kutcho Copper and Kaska’s commitment to work collaboratively while maximizing opportunities for Kaska as the project advances towards development of the Feasibility Study."
As part of the agreement, the Kaska Nation will receive 300,000 share purchase warrants, each of which will be exercisable to acquire one common share of Kutcho at a price of $1.00 for a period of five (5) years from the execution date of the agreement. The issuance of the warrants will be subject to Kutcho Copper’s filing requirements with the TSX Venture Exchange.
Kutcho’s 2018 field programs successfully provided for all of the remaining comprehensive datasets required to complete the Feasibility Study, which is underway and anticipated to be completed by Q2/Q3 2019. Kutcho is also preparing to enter in to the Environmental Assessment process. Milestones achieved to date and other ongoing efforts include:
- Resource Drill Program. Drilling program designed to expand the mineral resource base was successful in targeting areas of the Main Lens along its down dip edge where significant portions of the mineralization remain open;
- Metallurgical Program. Significant progress has been achieved with focus on a simplified process and optimized reagent scheme with the goal of reducing costs;
- Geotechnical Models. Completed comprehensive geotechnical drilling program to provide geotechnical models and stope design as a basis for the new mine design;
- Permitting Progress. Re-establishment of comprehensive baseline environmental data collection; and,
- First Nations. With the signing of the Exploration Agreement as mentioned above, the Company now has agreements in place with both the Kaska Nation and the Tahltan Central Government.
Major project milestones to be announced in the coming weeks that will form the core components of our Feasibility Study and Permitting initiative:
- Updated 43-101 resource estimate
- Metallurgical program update
- Submission of Kutcho’s Project Description, which will mark the project’s official entry into the Environmental Assessment process.
"We have made significant progress towards the completion of our Feasibility study. With a very successful 2018 field program and subsequent completion of key technical components, we look forward to announcing some of those results over the coming weeks." stated Kutcho Copper’s President and CEO, Vince Sorace.
Subject to TSXV approval, the Company has arranged a C$1.5 million one-year term lending facility to an arms-length party and agreed to issue 500,000 bonus shares that will be subject to a hold period of four months and a day from issuance. The loan bears interest at 5% and proceeds will be used towards the completion of the Feasibility Study.
About Kutcho Copper Corp.
Kutcho Copper Corp. is a Canadian resource development company focused on expanding and developing the Kutcho high grade copper-zinc project in northern British Columbia. Committed to social responsibility and the highest environmental standards, the Company intends to progress the Kutcho Project through feasibility and permitting to a positive construction decision.