Vancouver, British Columbia – Coloured Ties Capital Inc. (“CTI” or the “Company”) (TSXV: TIE) 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”) subject to meeting certain conditions. Superior has made the initial deposit of $7,500 and confirmed it intends to move forward with the Option Agreement.
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 at an exercise price of $.75 per share for period of five years (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.
Update on 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 under its substantial issuer bid (“SIB”) for an aggregate purchase price of approximately $3.375 million. The Company currently has 17,369,552 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 SIB and applicable law.
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.
Update on the holdings of Patriot Battery Metals Inc. and other lithium companies
Coloured Ties is pleased to report that as of January 26, 2023, it holds the following interests in the following lithium-focused companies:
1,936,200 common shares of Patriot Battery Metals which traded at $13.00 per share on the TSXV on January 26, 2023;V.PMET ASX:PMT
937,200 common shares of Azimut Exploration Inc. at an average cost of $1.021 per share;V.AZM
3,006,500 common shares of Power Metals Inc. at an average cost of $0.333 per share;V.PWM
469,000 common shares of Star Peak Mining at an average cost of $0.785 per share; and V.STE
83,000 common shares of Winsome Resources Inc. at an average cost of $1.729 per share. ASX:WR1
The values above are subject to audit. The Company holds other value holdings in public and private companies and cash that will be published in its audited financial statements.
Coloured Ties also reports that it is in discussions to complete proposed acquisitions of assets that may require additional capital. The proposed asset acquisitions are in the early stage of discussion and there is no guarantee any transaction will be completed. However, in the event the Company intends to proceed with an asset transaction, additional capital may be required, and the Company intends to position itself to be able to complete public offerings if needed. Any public offerings will be subject to the net asset value of the company, market conditions, the anticipated acquisition and careful consideration by the Company of the implications of the dilutive nature of a public offering.
Seeking Additional Uranium, gold and Technology Investment Opportunities
The Company is currently seeking additional investment opportunities in the uranium and gold exploration projects and leading edge technology sectors. Entrepreneurs and organizations seeking a partnership 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..