District Copper options 25% of Stony Lake to Sokoman

Executive Summary

• District Copper entered an option agreement with Sokoman Minerals to potentially sell its 25 % stake in the Stony Lake gold property for 500,000 Sokoman common shares.
• The company announced a private placement of up to $350,000 by issuing 4,666,666 units at $0.075 per unit, each consisting of one share and one warrant (exercise price $0.12, two‑year term).
• Proceeds will fund working capital, exploration on the 100 % owned Copper Keg project in BC, and future acquisition/option opportunities; finder’s fees of up to 8 % cash and 8 % warrants may be paid.

Key Details

• Option Agreement (dated Oct. 2 2025):
• Subject: District Copper’s 25 % interest in the Stony Lake property, Newfoundland.

• Consideration: Sokoman to issue 500,000 common shares to District Copper upon regulatory approvals.

• Private Placement Financing:

• Maximum gross proceeds: $350,000.
• Units offered: 4,666,666 at $0.075 per unit.
• Unit composition: 1 share + 1 transferable warrant.
• Warrant terms: Exercise price $0.12, exercisable for 2 years from issuance.

• Accelerated exercise provision: If, after a four‑month hold period, District Copper’s stock trades ≥ $0.20 for 20 consecutive trading days, the company may give notice to accelerate warrant expiry to 10 days from such notice.

• Use of Proceeds:

• General working capital.
• Exploration on the 100 % owned Copper Keg project (British Columbia).

• Potential new acquisition or option opportunities.

• Finder’s Fees: Up to 8 % cash and 8 % warrants of the private placement amount may be paid to finders, in whole or in part.

• Strategic Context:

• Completion of this agreement, together with prior agreements (e.g., with K9 Gold Corp.), will give Sokoman a 100 % interest in Stony Lake, consolidating ownership and enhancing exploration efficiency in the Exploits subzone of Newfoundland’s central gold belt.

Notable Quotes

• “We are pleased to complete this transaction with Sokoman Minerals, a company with extensive experience and proven exploration success in Newfoundland. This agreement allows District Copper to retain exposure to future discovery upside through its share position in Sokoman while freeing up resources to focus on our other exploration and development opportunities.” – Jevin Werbes, CEO, District Copper Corp.