NorthWest Copper raising $13 million for B.C. projects

NorthWest Copper raising $13 million for B.C. projects
Share this article

 

NorthWest Copper Corp. [NWST-TSXV] on Wednesday March 10 announced a bought deal financing that is expected to raise $13 million from the sale of 3.75 million common shares, five million flow-through common shares, and 4.55 million charity flow-through common shares to an underwriting syndicate.

The common shares will be sold for 80 cents a share, the flow-through shares will be sold for $1 each and the charity flow-through shares for $1.10 each, generating gross proceeds of just over $13 million.

The company has granted the underwriter an option to cover over-allotments which will allow the underwriters to offer up to an additional 20% of the offering on the same terms. The green shoe option can be exercised at any time prior to the closing of the offering.

NorthWest Copper shares eased 3.3% to 88 cents on the news, and now trade in a 52-week range of $1.06 and 29 cents.

NorthWest Copper is a new diversified copper-gold explorer and developer with a pipeline of projects in British Columbia. It hopes to benefit from the recent increase in the price of copper, which was trading at US$4.04/lb, up from US$3.52/lb in early February, 2020.

NorthWest Copper is the product of the recent merger of Serengeti Resources and Sun Metals Corp. and recently named Peter Ball as its President and CEO. Ball is a geologist who previously spent 13 years with Newmont Corp.

The transaction was designed to consolidate the contiguous copper-gold exploration and development assets that included Serengeti’s Kwanika Project and Sun Metals’ Stardust Project. Both of these assets are expected to benefit from operational synergies as they are advanced with a combined development strategy.

At the time of the merger deal, Serengeti was advancing its Kwanika copper-gold project in partnership with POSCO DAEWOOD and exploring its extensive portfolio of properties in north-central B.C. It hoped to complete a pre-feasibility study at Kwanika examining viability of an open-pit and bulk underground copper-gold mine. However, the company didn’t have the funds to carry out that plan. The project is now held by Northwest Copper with a 65% interest, and POSCO Daewood, which owns the other 35%.

The Stardust Project is 150 km north of Fort St James an is Sun Metals’ flagship project,  host to at least one mineralized carbonate replacement system identified as the Canyon Creek copper-gold deposit.

 

We seek Safe Harbor.

Related posts

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.