Copper One Resources (CSE:CEXY) has entered into a share exchange agreement to acquire Rooinek, which owns the Sport Project in Utah, US.
As part of the deal, Copper One will issue 14 million shares at C$0.55 ($0.56) per share. The proposed transaction remains subject to satisfying certain customary conditions, including receiving approval from the Canadian Securities Exchange.
CEO David Greenway says the acquisition of Rooinek represents another step in the company’s strategy of assembling a portfolio of copper exploration assets in North American mining jurisdictions.
“The Sport Project exhibits many of the geological characteristics we seek, including evidence of a potentially significant intrusive-related copper system, excellent infrastructure, and year-round exploration access,” Greenway says.
“We believe this acquisition complements our flagship Majuba Hill Project while providing shareholders with exposure to another compelling copper discovery opportunity in the US.
“As we continue advancing Majuba Hill, Rooinek adds another exciting growth platform.”
The Sport Project comprises 108 contiguous unpatented lode mining claims covering 770 hectares within the historical San Francisco mining district. Surface mapping has identified extensive magmatic-hydrothermal breccias, alteration, and structural features that support the interpretation that the near-surface, breccia-hosted mineralisation may be associated with a large intrusive-related copper system.
Copper One believes that the favourable geology of the project area, together with the historical mining within the district, suggests that the Sport Project has discovery potential.
The company is also amending a previously reported non-brokered private placement, with the subscription price per special warrant being reduced from C$0.50 to C$0.44. As such, the company will aim to raise C$8.58 million.
In connection with the repricing, the exercise price of the share purchase warrants issued with each conversion unit has been reduced from C$0.62 to C$0.55.
The funds will be used to accelerate exploration and development activities at the Majuba Hill Copper-Silver-Gold Project in Nevada. The funds will also provide additional working capital to advance the company’s broader portfolio of critical metal projects.
Copper One Resources is focused on discovering, acquiring, and advancing high-potential copper, gold, and molybdenum projects.
Write to Aaliyah Rogan at Mining.com.au
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