Metal Energy Completes Acquisition of Highland Valley Copper Project

Strategic Acquisition of Highland Valley Copper Project
Metal Energy has finalized the acquisition of the Highland Valley Copper Project in British Columbia from Happy Creek Minerals. The project is located next to Teck’s Highland Valley Copper (HVC) Mine, Canada’s largest copper mine, enhancing Metal Energy’s position in one of the world’s key copper-producing regions. This acquisition expands the company’s portfolio and provides access to a significant exploration opportunity with strong geological potential.

Terms of the Deal and Financial Arrangements
The acquisition deal saw Metal Energy paying $300,000 in cash and issuing 11.74 million common shares to Happy Creek, equating to a 9.9% ownership stake in Metal Energy. Additionally, Happy Creek will receive a 2.5% net smelter royalty (NSR) on the project, with Metal Energy holding the option to buy back 1.5% of the NSR for $5 million. The deal also includes commitments for exploration spending and financing. Metal Energy is required to allocate at least $250,000 for exploration by the end of 2024 and raise $2.5 million in financing over the next year. Failure to meet these obligations would result in Metal Energy’s interest in the project 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, a region rich in copper and other valuable minerals. The property shares geological similarities with Teck’s HVC, containing areas of copper-silver-molybdenum and copper-gold-silver-molybdenum-rhenium mineralization. Metal Energy has already initiated its exploration efforts, beginning with systematic ground-based Audio MagnetoTelluric (AMT) geophysical surveys, which will target highly prospective, glacially covered areas along the trend of Teck’s HVC.