Metal Energy has completed the acquisition of the Highland Valley Copper Project in British Columbia from Happy Creek Minerals. This acquisition strengthens Metal Energy’s presence in one of the world’s key copper-producing regions. The project is located next to Teck’s Highland Valley Copper (HVC) Mine, Canada’s largest copper mine. The deal enhances Metal Energy’s portfolio and provides significant copper exploration opportunities with strong geological potential.
Terms of the Deal and Financial Arrangements
Metal Energy paid $300,000 in cash and issued 11.74 million common shares to Happy Creek, representing a 9.9% ownership stake in Metal Energy. Additionally, Happy Creek will receive a 2.5% net smelter royalty (NSR) on the project. Metal Energy has the option to buy back 1.5% of the NSR for $5 million. The deal also includes exploration and financing commitments. Metal Energy must allocate at least $250,000 for copper exploration by the end of 2024 and raise $2.5 million in financing over the next year. Failure to meet these obligations will result in Metal Energy’s interest being transferred back to Happy Creek.
Exploration Potential and Initial Work Programme
The Highland Valley Copper Project spans 240 km² within the Guichon Creek Batholith. This region is rich in copper and other valuable minerals. The property shares geological similarities with Teck’s HVC, including copper-silver-molybdenum and copper-gold-silver-molybdenum-rhenium mineralization. Metal Energy has already started its exploration efforts. The company has launched ground-based Audio MagnetoTelluric (AMT) geophysical surveys. These surveys target highly prospective, glacially covered areas along the trend of Teck’s HVC.
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