The Lucky Mike Property is a large district-scale copper-silver-tungsten porphyry project in Southern British Columbia comprising 37 claims totaling approximately 7,675 hectares. The Property is located between between Kamloops and Merritt, British Columbia, adjacent to a major highway, and located approximately 20 km southeast of Highland Valley, Canada's largest copper mine, owned and operated by Teck Resources, which produced more than 127,000 tonnes of copper in 20251. The Property is located approximately 150 km from the United States border.
The Option Agreement is structured to provide First Atlantic shareholders with continued exposure to the potential value of Lucky Mike while allowing the Company to prioritize the growth and development of its Pipestone XL Smelter-Free Nickel-Cobalt Alloy Project in central Newfoundland. Under the Option Agreement, CCMC is required to incur an aggregate of $16,000,000 in qualified exploration expenditures to earn up to an 80% interest in the Property in two stages. First Atlantic will retain a 20% participating interest and, under the terms described below, will be carried (with no funding obligation and not subject to dilution) until delivery of a feasibility study on the Property while retaining the rights to a mining royalty.
Key Terms of the Transaction
Pursuant to the Option Agreement, CCMC may acquire up to an 80% interest in the Lucky Mike project through the following two-stage earn-in structure:
Stage 1 - Earn-In to 70%
To earn an initial 70% interest in the Property, CCMC must complete the following on or before the fifth anniversary of the effective date of the Option Agreement:
A cash payment of $150,000 to First Atlantic upon Exchange approval and closing of the transaction;
Cash and/or share payments to First Atlantic totaling $500,000 over the first three years of the Option Agreement;
A minimum of $6,000,000 in qualified exploration expenditures on the Property.
CCMC earns the 70% interest only upon completion of all Stage 1 requirements.
Stage 2 - Earn-In to 80%
To earn an additional 10% interest (for a total 80% interest), CCMC must incur an additional $10,000,000 in qualified exploration expenditures on the Property on or before the tenth anniversary of the effective date of the Option Agreement.
In total, the Option Agreement requires aggregate qualified exploration expenditures of $16,000,000, and cash/and or share payments to First Atlantic of $650,000.
Summary of Consideration and Expenditure Requirements
Period
Due Date
Shares/Cash
Cash
Qualified Expenditures Amount
Earn-In
First Option Earn-in Requirements
On the Effective Date of the Agreement
-
$150,000
-
