Kodiak, Teck sign LoI to establish new copper exploration company

Kodiak Copper has signed a non-binding missive of intent (LoI) with Teck Resources and Kay Copper to found a caller US-focused copper exploration company.

As portion of the transaction, Kodiak plans to transportation its wholly owned Mohave project, portion Teck intends to transportation its afloat owned Copper Hill project, some situated successful Arizona, to a subsidiary of Kay Copper.

The projected transaction involves the instauration of a caller backstage company, referred to arsenic NewCo, which volition subsequently use to database connected the TSX Venture Exchange (TSXV).

The transaction, inactive nether negotiation, requires assorted approvals including regulatory consent and owed diligence.

The woody is expected to adjacent successful the 3rd 4th of 2026.

Kodiak and Teck volition each person 20 cardinal shares of NewCo astatine a nominal worth of $0.25 (C$0.34) per stock for their respective projects.

Kay Copper, presently unlisted, volition undertake a three-cornered amalgamation with NewCo.

Upon completion, NewCo shareholders volition speech their shares for shares successful Kay Copper, aiming to database connected the TSXV.

In fiscal terms, NewCo plans to behaviour a concurrent financing round, aiming to rise a minimum of $2.9m astatine $0.25 per share.

The funds volition beryllium held successful escrow for task advancement and released erstwhile each regulatory approvals are fulfilled.

After the transaction concludes, Kay Copper is projected to person astir 70.3 cardinal shares outstanding.

Ownership organisation volition apt spot Kodiak and Teck each holding 28% and existing Kay Copper shareholders 9%, with the remaining shares distributed among caller financing participants.

The Mohave task encompasses a 17km² country successful Mohave County and presents imaginable porphyry copper-molybdenum-silver mineralisation akin to adjacent mining sites, though it has not seen drilling since 2011.

Copper Hill, a 35km² site, lies wrong a prolific mining territory with underexplored porphyry targets identified by caller Teck exploration.

In conjunction with receiving Kay Copper shares, Kodiak and Teck program to participate Investor Rights Agreements with the company.

Furthermore, Teck expects to unafraid offtake rights for definite aboriginal ore production, contingent connected definitive documentation.

Amid each this, the completion of the transaction is inactive not guaranteed.

Kodiak president and CEO Claudia Tornquist said: “While Kodiak remains firmly focused connected the MPD task successful British Columbia, we are excited to harvester our Mohave task with Teck’s Copper Hill task successful a caller company, Kay Copper.

“With 2 projects with aggregate targets acceptable to beryllium drilled this year, Kay Copper volition beryllium good positioned to prosecute a strategy of maturation and worth creation."