Metal Energy has completed the acquisition of the Highland Valley Copper Project in British Columbia from Happy Creek Minerals, securing a 100% interest.
The property purchase agreement involved a $300,000 (C$417,338) payment and the issuance of 11,736,100 common shares, making Happy Creek a 9.9% shareholder. Additionally, Metal Energy granted Happy Creek a 2.5% net smelter royalty (NSR) on the project.
The acquisition terms also stipulate that Metal Energy must carry out at least $250,000 in exploration by 31 December 2024.
Over the next three years, the company is obligated to issue common shares to Happy Creek, cumulatively valued at $6m.
If the issuance of additional shares leads to Happy Creek owning more than 19.9% of Metal Energy, the remaining balance will be settled in cash.
Happy Creek also retains the right to appoint one director to Metal Energy’s board as long as it holds a minimum 5% stake, with Jason Bahnsen being the current appointee.
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By GlobalData
To ensure compliance with the acquisition agreement, Metal Energy must complete financing totalling $2.5m within the next 12 months. Failure to meet the financing conditions could result in the property reverting to Happy Creek.
Metal Energy, a part of the Ore Group of companies, plans to leverage historical data to drive future exploration and development.
The Highland Valley Project, spanning 240km², is located in southern British Columbia with proximity to Vancouver and Merritt and essential infrastructure in place.
The project’s geology is similar to Teck’s adjacent HVC mine, with two key zones showing potential for mineralisation expansion.
The project is permitted for drilling and holds a drilling history, with more than 55,000m drilled across 402 holes, including 37,265m in 136 holes since 2007.
