Danderyd June 6, 2019

This press release may not be released, published or distributed, directly or indirectly, in or into the United States, Canada, Japan, Hong Kong, Singapore, Australia, New Zealand and South Africa, or any other jurisdiction where such action is wholly or partially subject to legal restrictions. The information in this press release does not constitute an offer to acquire, subscribe for or otherwise trade in shares, subscription rights or other securities in Copperstone Resources AB (publ). For further information, please refer to “Important Information” in this press release.

The Board of Directors of Copperstone Resources AB (publ) (“Copperstone” or “the Company”) decided on June 6, 2019, with authorization from the AGM on May 14, 2019, to issue new shares with preferential rights for shareholders in Copperstone of approximately MSEK 24 before transaction costs, estimated at 1.5 MSEK, to largest extent paid in shares (the “Rights Issue”). The Rights Issue is underwritten/guaranteed to 70 per cent via subscription undertakings and underwriting commitments. 75% of the proceeds, max MSEK 15, will be used for re-payment of the remaining upfront cash payment to Sunstone Metals Ltd (“Sunstone”) from the acquisition of Viscaria, a strategic acquisition adding 609,000 tons of code compliant copper resources (JORC 2012) to Copperstone. As regards the remainder of the cash debt to Sunstone, MSEK 5.4 including interest, will be converted to shares in July 2019, pursuant to the contract for the Viscaria acquisition. The remaining funds from the rights issue will be used to increase the planned core drilling activities and environmental studies.

Main terms of the rights issue:

• Shareholders in Copperstone have preferential rights to subscribe for one (1) new share per eight (8) existing shares, indicating a subscription ratio of 1:8. A total of approximately 52,332,021 new shares will be issued.
• The subscription price is SEK 0,46 per share, which amounts to proceeds of MSEK 24(before costs related to the rights issue).
• The record date for the rights issue is 13 June 2019 and the subscription period runs from 17 June 2019 to 1 July 2019, both dates inclusive.
• The shares are traded without the right to participate in the rights issue as from 12 June 2019. The final day for trading including the right to participate in the rights issue is 11 June 2019. Subscription rights will be traded on Nasdaq Stockholm from 17 June 2019 to 27 June 2019, both dates inclusive.
•  Subscription commitments in the rights issue correspond to 6.6 per cent of the rights issue. In addition 63.4 percent of the rights issue is underwritten by a consortium of underwriters, who will receive remuneration (cash or shares) at market level.

Background and additional information

Copperstone is in the process of contracting core drilling companies and in order to ensure the 18-month letter of intent that the Work Plan for Viscaria stipulates, the Board considers that it, especially in an attractively valued environment, certainly is in the interests of existing shareholders to turn to the shareholders in the first instance. All of the proceeds (less the amortization to Sunstone) is expected to be used for in-ground activities, primarily a decent portion of the 22 km drilling campaign which is planned for the next 18-24 months. A drill rig contractor is expected to be signed shortly, and drillings could commence Early to Mid July, subject then only to work permit approval. The Company will focus on Viscaria, to supplement documentation prior to the forthcoming application for environmental permit for restart of the mine. A strategic Copperstone project geological session between Copperstone and Sunstone is expected in Sweden in July.

Complete information about the offer can be found in the Investment Memorandum to be published shortly.

“New Copperstone is consolidating and mobilizing towards a significant drilling campaign on Viscaria A-zone, B-zone, D-zone, 101 and 107. Without Sunstone no Viscaria. I am proud to feel the shareholders support to be able to conclude the acquisition and intensify the focus on development. We are encouraged by our new contacts regarding land access meetings, building long term possibilities for co-existence. Our vision is to be the next significant base metals company out of Scandinavia", comments Michael Mattsson, CEO Copperstone.


For further information, please contact CEO Michael Mattsson, +46 705 739 777, michael.mattsson@copperstone.se, info@copperstone.se or visit the Copperstone website at www.copperstone.se

This press release contains insider information which Copperstone Resources AB (publ) is obliged to publish according to the EU market abuse regulation (MAR). This information was submitted for publication, through the above contact person’s agency, 9:30PM CEST on June 6, 2019.

About Copperstone

Copperstone is a public company trading as COPP B on NASDAQ First North (Stockholm). The Certified Adviser is Augment Partners AB, info@augment.se, +46 8 505 65 172. The Company is focused on base and precious metal exploration in the vicinity of the internationally recognized mining districts of Kiruna and the Skellefte-field in northern Sweden. In addition, the Company also owns an exploitation concession and an exploration permit in the Bergslagen mining region, in central Sweden.

Attachment

• PR190606Eng