FULL DISCLOSURE: This is sponsored content for Sterling Metals.
Sterling Metals (TSXV: SAG) is set to acquire a new copper project in the Sault Ste. Marie region of Ontario. The company last night saw shareholders of Copper Road Resources (TSXV: CRD) overwhelmingly approve the sale of the Copper Road project to the company.
The Copper Road project is a 24,000 hectare brownfield copper-moly-silver-gold project, which Sterling previously referred to as having “high potential” for mineralization. Copper production has previously occurred from two different mines found on the property, which when combined with recent porphyry and breccia drill holes, are said to suggest the potential for larger intrusion related copper mineralization.
Sponsored · Selkirk Copper Mines
Drilling conducted in 2023 at the project saw highlights of 1.06% copper over 38.63 metres in hole R2301, along with 0.88% copper over 50.17 metres in hole R2304, and 0.20% copper, 0.048% molybdenum over 95.0 metres in hole JR2302.
Sterling has previously indicated that the property requires a systemic and optimized approach to understand and refine exploration targets on site, while outlining a large phase one exploration program for the property.
Phase 1 is set to include reconnaissance work to confirm historical drill core and review key outcrop sites, data compilation and validation of drill holes, completion of a high resolution airborne magnetic survey across the property along with Lidar surveys, and focused outcrop sampling and trenching. The phase one program has been designed to build confidence for targeting of future drilling, with Sterling also planning on constructing logging and sampling facilities on site.
READ: Market Movers: Copper Road Jumps 57% After Hitting 50 Metres Of 1.00% Copper Equivalent
Sponsored · Cambria Gold Mines
Under the terms of the transaction, Sterling is to issue common shares equal to 49% of its issued and outstanding shares, and make cash payments totaling $460,000. This is expected to result in the issuance of 108.1 million common shares, of which Copper Road is to retain 21.8 million, with the remainder to be distributed to current shareholders of Copper Road Resources. The transaction in effect will see current shareholders of Copper Road receive 1.46 shares of Sterling for every share of Copper Road held, while the company will retain a 9.9% interest in Sterling Metals.
The issuance of shares, as well as the distribution of shares to shareholders, is expected to occur concurrently on May 10, 2024, with May 8, 2024, set as the record date for the distribution.
The transaction was approved by over 90% of the shares cast by Copper Road investors.
Sterling Metals last traded at $0.055 on the TSX Venture.
FULL DISCLOSURE: Sterling Metals is a client of Canacom Group, the parent company of The Deep Dive. Canacom Group is currently long the equity of Sterling Metals. The author has been compensated to cover Sterling Metals on The Deep Dive, with The Deep Dive having full editorial control. Not a recommendation to buy or sell. We may buy or sell securities in the company at any time. Always do additional research and consult a professional before purchasing a security.
FULL DISCLOSURE: Canacom Group is currently long the equity of Copper Road Resources.
