February 2, 2012 – Copper Creek Gold Corp. (the “Company” or “Copper Creek”, TSX.V: CPV) wishes to announce that site preparation for the Company’s upcoming drilling program at it’s Santa Lucia property, located 200km southeast of Hermosillo, Mexico, has begun.
The Company is currently rehabilitating access roads that were damaged during this year’s exceptionally heavy rainy season. The Company continues to anticipate that drilling will commence in the second week of February 2012. Further details of the drilling are contained in the Company’s January 19, 2012 news release.
Copper Creek may earn a 60% interest in Santa Lucia from Kootenay Gold Inc. (KTN-V) by spending
$2,000,000.00 in exploration and making modest cash and share payments to Kootenay over a 4 year period.
The Company also announces that further to the news releases of December 9, 2011 and January 3, 2012, it is extending the private placement financing for the second tranche by a further 30 days.
On January 3, 2012 the Company closed the first tranche of the private placement by the issuance of an aggregate of 2,586,000 units for gross proceeds of $169,160, consisting of 1,886,000 NFT Units at a price of $0.06 per NFT Unit, and 700,000 FT Units at a price of $0.08 per FT Unit.
The complete financing consists of an aggregate of 20,000,000 units to raise gross proceeds of
$1,400,000, comprised of:
1. $600,000 through the issuance of 10,000,000 units (“NFT Units”) at a price of $0.06 per NFT Unit, each NFT Unit consisting of one non-flow-through common share and one transferable share purchase warrant (“NFT Warrant”). Each NFT Warrant will entitle the holder to purchase one additional non-flow-through common share in the capital of the Company for a period of twelve months from the date of issuance of the NFT Units, at an exercise price of $0.10 per share.
2. $800,000 through the issuance of 10,000,000 units (“FT Units”) at a price of $0.08 per FT Unit, each FT Unit consisting of one flow-through common share and one non-transferable share purchase warrant (“FT Warrant”). Each FT Warrant will entitle the holder to purchase one additional non-flow-through common share in the capital of the Company for a period of twelve months from the date of issuance of the FT Units, at an exercise price of $0.12 per share.
A cash finder’s fee of up to 8% may be paid in connection with the financing. Any securities issued will be subject to a hold period of four months and one day.
Certain of the Company’s insiders may participate in the Private Placement.
The net proceeds of the private placement will be used for exploration of the Company’s Santa Lucia, Bonsai, and Blackwater properties, and for general working capital purposes. Proceeds from the sale of FT Units will be used to incur expenditures which qualify as Canadian exploration expenses while proceeds from the sale of NFT Units will be used for both exploration expenses and general working capital.
The private placement is subject to approval by the TSX Venture Exchange.
About Copper Creek Gold:
Copper Creek Gold Corp. is a Canadian-based mineral exploration company actively exploring in British Columbia, Canada and Mexico. The Company holds exploration properties in the Eskay Creek area of Northern British Columbia, the Blackwater area of Central British Columbia, and the Sierra Madre region of Sonora, Mexico. For more information on Copper Creek Gold Corp., visit our web site: http://www.coppercreekgold.com
ON BEHALF OF THE BOARD James Anderson, President
FOR FURTHER INFORMATION CONTACT James Anderson, President
Tel. 604-662-3004, ext. 105
Cell: 778-989-5346 [email protected]
Bing Jung, CEO
Tel. 604-662-3004, ext. 101 [email protected]
www.coppercreekgold.com
Neither the TSX Venture Exchange nor the Investment Industry Regulatory Organization of Canada (IIROC) accepts responsibility for the adequacy or accuracy of this release.
This news release includes certain forward-looking statements or information. All statements other than statements of historical fact included in this release, including, without limitation, statements regarding future plans and objectives of Copper Creek are forward looking-statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from Copper Creek’s plans or expectations include availability of capital and financing, general economic, market or business conditions, regulatory changes, timelines of government or regulatory approvals and other risks inherent in the oil and gas and mineral exploration industries and from the time to time in the filings made by Copper Creek. Copper Creek makes all reasonable efforts to update its corporate material, documentation and forward-looking information on a timely basis.
