Coloured Ties Announces Approval of Option Agreement with Superior, Grant of Options and Closing of Substantial Issuer Bid
Vancouver, British Columbia--(Newsfile Corp. - January 27, 2023) - Coloured Ties Capital Inc. (TSXV: TIE) ("CTI" or the "Company") announces that, further to its news release on December 7, 2022, it has obtained conditional approval from the TSX Venture Exchange (the "TSXV") with respect to the option agreement, as amended on January 16, 2023, (the "Option Agreement") entered into between Quebec Pegmatite Corporation ("QPC"), a majority-owned subsidiary of the Company, and Superior Mining International Corporation ("Superior"), whereby Superior has the option to earn a 100% interest in the Vieux Comptoir Lithium Property (the "Property"). Superior has made the initial deposit of $7,500 and confirmed it intends to exercise its Option.
Under the terms of the Option Agreement, Superior may exercise the option to acquire 100% interest in the Property upon the issuance to QPC of the following share issuances:
7,000,000 common shares of Superior (the "Superior Shares") upon receipt of approval of the TSXV;
3,500,000 Superior Shares payable on the one year anniversary of the Option Agreement; and
3,500,000 Superior Shares payable on the eighteen month anniversary of the Option Agreement.
The Option Agreement remains subject to the final approval of the TSXV, including the receipt from Superior of a National Instrument 43-101 technical report in respect of the Property by February 28, 2023. Pursuant to the terms of the Option Agreement, in the event Superior exercises its option in full and acquires the Property, Superior shall grant QPC a 3.0% net smelter return royalty (the "NSR Royalty") and the NSR Royalty may be reduced to 1.5% upon Superior making a cash payment of $3,000,000 to QPC.
Issuance of Option Grants
The Company is pleased to announce that it has granted an aggregate of 250,000 options (the "Options") to a consultant of the Company pursuant to the Company's stock option plan dated for reference August 18, 2022 (the "Plan"). The Plan was approved by the shareholders of the Company on September 23, 2022. The Options shall vest immediately. The Options are subject to the terms of the Plan.
Substantial Issuer Bid
Further to the Company's news release on January 18, 2023, the Company confirms it has taken up and purchased for cancellation a total of 5,192,307 common shares ("Shares") at a price of $0.65 per Share pursuant to its substantial issuer bid ("SIB") for an aggregate purchase price of approximately $3.375 million. After giving effect to the SIB, the Company will have 16,919,552 Shares issued and outstanding. Shareholders who have tendered their Shares pursuant to the SIB can expect payment for the Shares by January 27, 2023 in accordance with the terms of the SIB as set out in the SIB circular.
This press release is for informational purposes only and does not constitute an offer to buy or the solicitation of an offer to sell the Company's shares.
The Company filed a Notice of Intention to be Qualified Under National Instrument 44-101, Short form Prospectus Distributions.
The Company is an investment issuer and may from time to time require capital to make investments or fulfil commitments associated with investee companies or projects. As such the Company intends to qualify for short form distributions to capitalize on possible fund raising to capture opportunities that provide shareholder value. In addition the Company may require the flexibility to issue shares pursuant to a prospectus in connection with acquisition and or investments. Acquisition discussions are at an early stage and may not be completed on the terms currently contemplated or at all. Management of the Company is aware of the dilution associated with any financing activity and intends only to raise additional capital if required in the execution of its investment plan, in context of the market, the net asset value of the Company and if it serves to enhance shareholder value.
Patriot Battery Metals Holdings and other Lithium Holdings Update
Coloured Ties is pleased to report that as of January 26, 2023, it holds 1,936,200 shares of Patriot Battery Metals which traded as high as $13.50 per share.
Azimut Exploration Inc 937,200 shares at average cost of $1.021 per share
Power Metals Inc 3,006,500 shares at average cost of $0.333 per share
Star Peak Mining 469,000 shares at an average cost of $0.785 per share
Winsome Resources 83,000 shares at average cost of $1.729 per share
The values above are based on trading data on the TSXV Exchange. The company holds other smaller value holdings in public and private companies and cash that will be published in audited financial statements.
Seeking Investment in Uranium, Gold and Technology Opportunities
Coloured Ties Capital is currently seeking additional investment opportunities in the uranium and gold exploration projects and leading edge technology sectors. Entrepreneurs and organizations seeking a partnerships in these sectors are encouraged to contact the Company with a brief summary of the projects or review.
For further information please contact:
Coloured Ties Capital Inc.
Kal Malhi Chief Executive Officer
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Approval of the Option Agreement is subject to a number of conditions, including but not limited to, TSXV approval. There can be no assurance that the Option Agreement will be approved as proposed or at all. Except for historical information contained herein, this news release contains forward-looking statements that involve risks and uncertainties. Actual results may differ materially. Except as required pursuant to applicable securities laws, the Company will not update these forward-looking statements to reflect events or circumstances after the date hereof. More detailed information about potential factors that could affect financial results is included in the documents filed from time to time with the Canadian securities regulatory authorities by the Company.
The forward-looking statements contained in this news release present the expectations of the Company as of the date hereof and, accordingly, is subject to change after such date. Readers are cautioned not to place undue reliance on forward-looking statements.
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