newsCanadian Mining signs MOU to acquire 62.5% of Natural 2018-02-22 11:34 ET - News Release Mr. Brian Thurston reports CANADIAN MINING CORP. ANNOUNCES THE SIGNING OF A NON-BINDING MEMORANDUM OF UNDERSTANDING On Jan. 12, 2018, Canadian Mining Corp. signed a non-binding memorandum of understanding with Natural Ventures PR LLC, whereby the company intends to acquire a majority of the issued and outstanding capital units of the target. Upon consummation of the transaction described in this MOU, the company will own 62.5 per cent of all of the issued and outstanding units of Target's capital units (the "Target Units"). Natural Ventures PR LLC Details Target is a Puerto Rico limited liability company that was formed on October 13, 2015 and is the holder of various licenses that allow it to legally operate cannabis businesses in the U.S. Territory of Puerto Rico. It is licensed to operate 100,000 sq. ft. of cannabis cultivation and 35,000 sq. ft. of cannabis products manufacturing, including the use of solvent extraction and the manufacture of edibles. At present, Target is one of Puerto Rico's largest licensed cultivation and manufacturing medical cannabis companies with an indoor growing facility. Target successfully harvested its first crop and began selling cannabis products to licensed medical dispensaries in February of 2017. Puerto Rico legalized medical cannabis for qualifying health conditions in 2015 and permits the use of medical cannabis derivatives only (e.g. capsules, extractions, lotions, patches, edibles, suppositories, flower and oils). Purchase Consideration As consideration for the Target Units, CNG will make a cash payment in the amount of US$2,250,000 (the "Purchase Price"), which will be payable at closing upon the completion and execution of a Definitive Agreement. It is further contemplated that the Definitive Agreement will provide that CMC agrees to make a convertible loan to Target in the aggregate amount of US$750,000. Up to US$300,000 is to be disbursed within thirty days from the Effective Date of this Non-Binding Memorandum of Understanding. The remaining amount will be made available on an as-needed basis after the Definitive Agreement has been reached. The totality of the US$750,000 is to be used to purchase raw material, manage payables, and provide four (4) months of working capital following the Effective Date. The Company has made the US$300,000 refundable loan payment to Target and continues to perform due diligence on this asset while working through the Definitive Agreement process. The Company will provide an update on the Definitive Agreement when available. About Canadian Mining Corp. Canadian Mining Corp. holds the Bullard Pass Property mining asset in Arizona. The Bullard Pass Property consists of 171 unpatented claims in one large block totalling 3,420 acres. The claims are 100% owned by Canadian Mining of Arizona Inc. a wholly owned U.S. subsidiary of Canadian Mining. Canadian Mining Corp. announced a change of business through the acquisition of cannabis permits and licenses in California; see news release dated December 18, 2018 or view on SEDAR. Simultaneous with the change of business into the cannabis sector, the Board of Directors continues to actively pursue new opportunities for project generation and continued financing. We seek Safe Harbor. 2018 Canjex Publishing Ltd. All rights reserved.