Cambria Gold Mines (TSXV: CAMB) will hold on to its Mt. Margaret copper-gold porphyry project in Washington State, deferring a plan to spin the asset out into a standalone company.
The company said Thursday it is terminating its binding term sheet with ECC Ventures 4 Corp. and cancelling the proposed transaction. That deal, unveiled in July, would have renamed ECC4 as Freedom Copper Corp. and carried a concurrent brokered financing of up to US$100 million.
Cambria cited talks with strategic partners, shareholder feedback and strong copper fundamentals behind the decision for the reversal. The company now believes more value can be added by advancing Mt. Margaret alongside its Premier Gold Mine Complex and Red Mountain Gold Deposit in British Columbia’s Golden Triangle.
“We see the opportunity to build an exceptional growth-oriented company at Cambria, anchored by near-term gold production at the Premier Gold Mine Complex in Canada and a potential Tier 1 copper deposit at Mt. Margaret,” said Chief Executive Officer Robert McLeod.
McLeod pointed to more than 1 square kilometre of outcropping mineralization at surface, open in most directions and at depth below 500 metres. He framed permitting milestones, infill and exploration drilling, a mineral resource estimate and economic studies as the route to adding value “by keeping our portfolio together.”
The deposit carries a historical, non-compliant 1980 estimate from Duval Corporation of 577 million tonnes grading 0.36% copper, 0.24 g/t gold, 0.011% molybdenum and 1.58 g/t silver.
Cambria’s US team is advancing permit applications and environmental studies ahead of further drilling, and has begun engagement with local, county, state, federal and Tribal representatives.
The pivot comes with changes to the leadership bench. Retired Major General Kim Colloton joins the board effective immediately. Colloton spent more than 30 years in the U.S. Army, most recently as Deputy Chief of Engineers and Deputy Commanding General of the U.S. Army Corps of Engineers, where she oversaw a $90 billion portfolio and a workforce of 38,000. She had been slated for the Freedom Copper board under the original plan.
Cleve Rueckert, named Vice-President (USA) in June, becomes Vice-President of Corporate Development. Rueckert previously led investor relations at Barrick and covered metals and mining as an executive director at UBS.
Cambria Gold Mines last traded at $0.90 on the TSX Venture.
