Canadian Copper (CSE: CCI) has managed to grab hold of a majority stake in a major asset in New Brunswick. The firm has entered an arrange to acquire a 72% interest in the Murray Brook joint venture, which owns the Murray Brook project in the Bathurst Camp of New Brunswick.
Murray Brook is said to have a historic measured and indicated resource of 18 million tonnes of 0.47% copper, 2.73% zinc, 0.99% lead, 42 g/t silver and 0.59 g/t gold. The figure translates to 183 million pounds of copper, 1.07 billion pounds of zinc, 390 million pounds of lead, 42 million ounces of silver 339,000 ounces of gold.
The historic resource is contained within an open pit model, with mineralization extending to a depth of 350 metres. The data comes from a preliminary economic assessment completed in 2013. That study also saw an estimated mine life of 10 year, which annual production of 91.4 million pounds of zinc, 9.2 million pounds of copper, 13.6 million pounds of lead and 1.3 million tonnes of silver.
“Our objective to secure majority ownership of the Murray Brook deposit has been central to our growth strategy since 2022. This potential acquisition of a large, advanced-stage polymetallic asset is transformative for Canadian Copper. This considered transaction would firmly establish the Company’s footprint as a base metal explorer with significant mineral resources in the Bathurst Camp,” commented CEO Simon Quick.
“This opportunity enables possible synergies with the Chester deposit through the implementation of hub and spoke processing. Several deposits in the region extend beyond 1,000 meters in depth, thus we are excited to test the vertical depth extent of Murray Brook beyond the previously explored 350 meters.”
In terms of location, the Murray Project is located directly adjacent to Canadian Copper’s Murray Brook West property, as well as its Murray Brook project in the east. The new Murray Brook asset is connected to the previously operating Caribou Mine and Restigouche Mine, which collectively have pulled out more than 700 million pounds of zinc, copper, lead and other metals since the 1970’s. The property is situated on the Caribou Horizon trend.
The transaction, which is currently at the letter of intent stage, will see Canadian Copper pay an initial $1.0 million in cash, followed by the issuance of 2.0 million units of the company, a 0.25% NSR royalty which has a sliding scale based on the price of zinc, and a final installment payment of $2.0 million in cash, to be paid within 31 days of commercial production. The company must also replace a $2.0 million bond within three months of closing the transaction, which is provided to the Government of New Brunswick.
The joint venture arrangement will see its minority party contribute its proportionate share of expenditures or will see its ownership diluted in the asset.
The transaction is slated to close once consideration is paid, and the company has issued the related shares, NSR royalty, and replaced the bond with the Government.
Canadian Copper last traded at $0.095 on the CSE.
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As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.