Kodiak Copper (TSX-V:KDK) is advancing a previously announced transaction with Teck Resources (NYSE:TECK) and Kay Copper, to create a new US-focused copper explorer (NewCo) that will list on the TSX Venture Exchange.
Under the transaction, Kodiak will sell its wholly owned Mohave Project and Teck will sell its wholly owned Copper Hill Project into a subsidiary of Kay Copper.
The NewCo will issue both companies 20 million shares at US$0.25 per share, as consideration for the assets.
The transaction, expected to close in Q3 2026, is subject to ongoing negotiations, executing definitive agreements, due diligence, as well as consents and regulatory approvals.
NewCo has completed a non-brokered initial financing of US$0.10 per share to raise US$830,000 ($1.18 million) which will be used to support the listing on the TSX Venture Exchange.
The company is also conducting a subscription receipt financing at $0.25 to raise C$4 million. The funds will be used for exploration work programs to materially advance both projects, as well as other corporate purposes.
Achieving milestones
Kodiak CEO Claudia Tornquist says the deal is progressing well and important milestones are being achieved.
“Mark Osterberg, an accomplished geologist with extensive copper porphyry experience, has agreed to join Kay Copper as Vice President of Exploration, based in Arizona, and lead the company’s exploration programs at the Mohave and Copper Hill projects,” Tornquist says.
“This is a key appointment for the company, and we are glad to have found such an excellent candidate to strengthen our technical leadership team.”
Following completion of the transaction and the NewCo concurrent financing, Kay Copper is expected to have 70.3 million shares outstanding, on an undiluted basis.
Kodiak and Teck will each hold 28% of the NewCo, while Kay Copper existing shareholders will hold 9%.
Kodiak Copper is focused on advancing copper and gold projects located in south-central British Columbia.
Write to Aaliyah Rogan at Mining.com.au
Images: Kodiak Copper
