District Copper Announces Option Agreement with Sokoman Minerals on Stony Lake Property and Private Placement
Executive Summary
- District Copper entered an option agreement with Sokoman Minerals to potentially transfer its 25 % interest in the Stony Lake Gold Property in exchange for 500,000 Sokoman common shares.
- The company announced a private placement financing of up to $350,000 through the issuance of 4,666,666 units at $0.075 per unit, each consisting of one share and one warrant (exercise price $0.12, 2‑year term).
- Proceeds will be used for general working capital, exploration on the 100 % owned Copper Keg project in BC, and potential new acquisition or option opportunities.
Key Details
- Option Agreement:
- Date: October 2 2025
- Counterparty: Sokoman Minerals Corp.
- Subject: District Copper’s 25 % interest in the Stony Lake Gold Property (Newfoundland).
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Consideration: 500,000 common shares of Sokoman, subject to regulatory approvals.
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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.
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Acceleration clause: If, after the four‑month hold period, District Copper’s stock trades at ≥ $0.20 for 20 consecutive trading days, the company may accelerate warrant expiry to 10 days after notice.
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Use of Proceeds:
- General working capital.
- Exploration on the 100 % owned Copper Keg project in British Columbia.
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Funding potential new acquisition or option opportunities.
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Finder’s Fees:
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Up to 8 % cash and 8 % warrants of the private placement amount (or a portion thereof) may be paid as finder’s fees.
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Management Comment:
- Jevin Werbes, CEO, highlighted that the transaction allows District Copper to retain upside exposure via Sokoman shares while freeing resources for other exploration and development projects.
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, President & CEO
Materiality Assessment: Material – Positive (the financing provides new capital for operations and the option agreement could result in a strategic asset disposition).