NovaCopper Sells Titiribi Property to Brazil Resources
August 18, 2016
August 18, 2016 - Vancouver, British Columbia - NovaCopper Inc. (TSX, NYSE-MKT:NCQ) ("NovaCopper" or the "Company") has entered into a share purchase agreement to sell its wholly-owned subsidiary, Sunward Investments Limited, which indirectly owns the Titiribi property to Brazil Resources Inc. ("BRI") in exchange for 5 million common shares of BRI and 1 million warrants. Each warrant is exercisable into one common share of BRI for a period of two years from the closing date of the transaction at a price of C$3.50 per BRI common share. Using the 20 day volume weighted average price of BRI shares on the TSX-V of C$2.61, the value of the 5 million common shares of BRI would be approximately C$13.1 million. Closing of the transaction is subject to satisfaction of certain closing conditions and receipt of regulatory approval, and is anticipated to occur on or about September 1, 2016.
The Titiribi property is located approximately 70 kilometers southwest
of the city of Medellin, Colombia, in Antioquia department, within the
historical Titiribi mining district; an important historic gold and
silver producing region. It was acquired in June 2015 as part of a
larger corporate transaction between NovaCopper and Sunward Resources
Limited. "While we believe the Titiribi property has excellent
exploration potential and a strong local team, the sale allows
NovaCopper to focus on its high-grade copper, zinc and precious metals
projects located in northwest Alaska", said Mr. Rick Van Nieuwenhuyse,
NovaCopper's President and Chief Executive Officer. Mr. Van Nieuwenhuyse
continued, "The project is being placed in good hands under the
management of Brazil Resources who have experience in South America and a
growth strategy of building a portfolio of assets that provides its
shareholders meaningful optionality and leverage to the price of gold."
NovaCopper Inc. is a metals exploration company focused on exploring and developing the Ambler mining district located in northwestern Alaska. It is one of the richest and most-prospective known copper-dominant districts located in one of the safest geopolitical jurisdictions in the world. It hosts world-class polymetallic VMS deposits that contain copper, zinc, lead, gold and silver, and carbonate replacement deposits which have been found to host high grade copper mineralization. Exploration efforts have been focused on two deposits in the Ambler district - the Arctic VMS deposit and the Bornite carbonate replacement deposit. Both deposits are located within NovaCopper's land package that spans approximately 143,000 hectares. NovaCopper has an agreement with NANA Regional Corporation, Inc., a Regional Alaska Native Corporation that provides a framework for the exploration and potential development of the Ambler mining district in cooperation with local communities. Our vision is to develop the Ambler mining district into a premier North American copper producer.
More information on the Company, its properties and its management team is available on the Company's website at www.novacopper.com.
Rick Van Nieuwenhuyse
President & Chief Executive Officer
Vice President & Chief Financial Officer