Guyana Goldstrike changing name to Copper X

Guyana Goldstrike Inc. [GYA-TSXV] is moving to acquire a copper exploration project in Chile and plans to change its name to Copper X Mining Inc. after the transaction is complete.

Guyana Goldstrike said it has signed a binding letter of intent (LOI) dated July 19, 2023, to acquire the Jupiter Copper Project, which is located in the Antofagasta region of Chile. Guyana is acquiring the asset from Jupiter Metals Inc., an arms length private company.

Following completion of the transaction, Guyana said it plans to change its name to Copper X Mining and will focus its resources on development of the project.

Meanwhile, Guyana said it will conduct a non-brokered private placement of up to 12 million units priced at $0.15 per unit, raising gross proceeds of $1.8 million. It said the net proceeds will be used to maintain the Jupiter project and support further development, extinguish liabilities and payables, as well as to address costs associated with completion of the transaction.

These announcements came after the close of trading on July 24, 2023. Guyana shares were priced at 12.5 cents prior to a halt trading order.

Under the terms of the offering, each unit will consist of one post consolidated common share and one share purchase warrant entitling the holder to acquire an additional post-consolidation share for 0.25 for two years following completion of the concurrent financing.

Guyana has the option to accelerate the expiry date of the option if the shares trade at 50 cents or above for 10 consecutive trading days.

The Jupiter project covers 4,000 hectares and contains two target areas with high exploration potential  in proximity to historic workings a mine developments. Airborne MAG shows that mineralization is consistent with low mag, signaling several untested areas.

In a press release, Guyana said the Jupiter project is accessible by paved road 90 kilometres south of Antofagasta City, the main hub in northern Chile, with access to renewable power and adjacent to the ocean.  The company said the underexplored Jurassic Volcanic/IOCG Belt is host to world class mining operations, including Teck Resources Ltd.’s (TECK.B-TSX, TECK.A-TSX, TECK-NYSE)  Carmen de Anacollo and Lundin Mining Corp’s [LUN-TSX; LUMI-Sweden]  Candelaria.

Under the LOI, Guyana will be granted the exclusive right to acquire the project in return for the payment of cash and shares. Work commitments include a pledge to complete 5,000 metres of drilling work before February 24, 2023.

The company has also agreed to issue 13 million common shares after the TSX Venture Exchange issues a final acceptance bulletin in relation to the proposed transaction and following the completion of a consolidation of 1.5 for 1.0 share basis and the issuance of 7.0 million share purchase warrants to the vendor. The warrants will give the vendor the right to purchase up to 7.0 million post-consolidation common shares for 25 cents each for two years.