Forte Copper Corp. signed a binding letter of intent to acquire Collingwood Resources Corp. (TSXV:COLL.P) in a reverse merger transaction on August 13, 2020. Under the terms of the transaction, Collingwood Resources will issue 27.13 million shares to the shareholders of Forte Copper at an exchange ratio of 1 Collingwood Resources share for each Forte Copper share. Collingwood Resources will issue up to 6.14 million warrants to purchase resulting issuer shares in exchange for outstanding Forte warrants. The warrants will be exercisable into shares at an exercise price of CAD 0.20 per share. Additionally, 3.15 million options to purchase resulting issuer shares will be issued in exchange for Forte stock options. The options will be exercisable into shares at an exercise price of CAD 0.12 per share. Collingwood has advanced CAD 0.03 million to Forte, as a non-refundable deposit, upon signing the letter of intent. Collingwood Resources will change the name prior to closing of acquisition. Principals of Forte will become the management of Collingwood Resources. Upon completion it is intended that all current members of the Collingwood board will resign and Board will be reconstituted to include Doug Turnbull, Director, Richard Osmond, Executive Director and Patrick Elliott, President Chief Executive Officer & Director and Stephanie Ashton. In connection with signing the letter of intent, on closing of the transaction but prior to the completion of any concurrent financing, Collingwood is expected to have 31. 6 million shares issued and outstanding on an undiluted basis and 41.1 million share on a fully diluted basis. On closing of the transaction, the surviving entity will continue the business of Forte and be listed as a Tier 2 mining issuer on the Exchange.

The closing is subject to certain customary transaction conditions, receipt of all necessary approvals of the boards of directors and shareholders of Collingwood and Forte, receipt of all necessary third party consents, approval of the Transaction by the Exchange as Collingwood 's Qualifying Transaction, completion by Forte of a work program on Pucarini of not less than CAD 0.1 million in qualifying expenditures, Collingwood satisfying the Initial Listing Requirements set by the Exchange for a Tier 2 Mining Issuer, definitive agreement and completion of financing.