Star Copper (CSE:STCU) has entered into a definitive agreement with Zimtu Capital Corp (TSX-V:ZC) to acquire the Copperline Project in British Columbia, Canada.
In conjunction with the deal, Star Copper plans to complete a non-brokered private placement for up to C$2.5 million from the sale of up to 1.66 million flow-through (FT) units of the company at C$1.50 per unit.
Each FT unit will comprise one FT common share and one FT common share purchase warrant. The warrants will be exercisable to acquire one common share at $1.60 per warrant share for a 24-month period.
Star Copper will use the funds to incur Canadian exploration expenses that are flow-through critical mineral mining expenditures, within the meaning of the Tax Act, on the Star Project.
The offering is expected to close on or about 23 July 2025.
The Copperline Project consists of eight mineral claims across 4,502 hectares.
Under the acquisition, Star Copper will pay C$350,000 ($391,670), issue 500,000 shares, and grant Zimtu a 2% net smelter return royalty payable on all production from the Copperline Project.
Upon achieving certain milestones including publishing a resource estimate, the company will also pay C$750,000 and issue C$750,000 worth of shares to Zimtu.
Star Copper intends to compile legacy data, create a 3D geological model, and execute a staged exploration program that includes surface mapping, geophysics, and diamond drilling focused on the Main Zone extensions and new target areas.
Copperline hosts copper-silver mineralisation that is considered characteristic of volcanic redbed copper systems and consists of disseminated and vein-controlled sulphides, including bornite, chalcocite, chalcopyrite, and tetrahedrite.
Star Copper is a Canadian mineral explorer focused on advancing its project portfolio in North America. The company’s flagship Star Project is an alkalic copper-gold porphyry asset located within the Golden Triangle and Golden Horseshoe regions of British Columbia.
Write to Aaliyah Rogan at Mining.com.au
Images: Star Copper
