Canadian Copper (CSE:CCI) has closed a financing package of up to C$43.8 million ($44.56 million) with OR Royalties (TSX:OR) for the development of its Murray Brook Project and Caribou Process Plant in New Brunswick, Canada.
The company received C$12.5 million on 16 July, comprising a C$7.02 million upfront stream deposit and a C$5.48 million equity investment.
OR Royalties subscribed for 7.31 million Canadian Copper shares at C$0.75 each, representing a 20% premium to the company’s closing share price when the financing was announced in April.
A further C$31.5 million will be payable in quarterly instalments during construction of the combined Murray Brook and Caribou development, which Canadian Copper refers to as the Bathurst Complex.
The construction funding remains subject to conditions including receipt of outstanding permits, board approval, sufficient funding through to completion, and satisfaction of minimum debt service coverage requirements.
Under the streaming agreement, OR Royalties will receive 20% of the payable silver and gold produced from the Bathurst Complex.
OR Royalties will pay 20% of the applicable spot price for the metals, with the remaining 80% credited against its deposit until the balance is reduced to nil. It will continue paying 20% of spot prices thereafter.
“Closing our precious metal stream financing and equity subscription with OR Royalties was our next milestone as we advance our Feasibility Study in parallel with starting the provincial permitting approval process. We look forward to seeing drill core this month as we increase our exploration efforts in close proximity to the Murray Brook deposit,” CEO Simon Quick says.
Canadian Copper registered an environmental impact assessment for the development with the New Brunswick Department of Environment and Local Government on 13 July. It has also received a court vesting order relating to its acquisition of the Caribou plant.
The company had C$17.3 million in cash as of 30 April and also has access to an optional C$48 million project debt facility from Ocean Partners UK.
Canadian Copper is a mineral development company focused on copper, zinc, silver, and other base metal assets in New Brunswick’s Bathurst Mining Camp.
Write to France Pinzon at Mining.com.au
Images: Canadian Copper
