Western Metallica Resources Corp. (TSX-V:WMS) announced a significant stride in its expansion strategy with the acquisition of Consolidated Copper Corp, a private Canadian firm with two copper-molybdenum porphyry prospective projects in Peru.
The acquisition, formalized through a share purchase agreement dated August 10, 2023, means Western Metallica now has the rights to the Caña Brava and Turmalina projects in northern Peru.
The Caña Brava project spans 5,100 hectares in northern Peru, holding potential for medium-sized, above-average grade porphyry copper-molybdenum systems. With visible mineralization and distinct alteration patterns, the westernmost porphyry center, El Sausal, exhibits promising copper grades near the surface.
Similarly, the Turmalina project, covering 2,600 hectares, boasts a copper-molybdenum breccia-hosted system with historic high-grade copper-molybdenum mining. Abundant breccia pipes hint at a substantial porphyry system below, which Western Metallica feels could host further high-grade copper-molybdenum finds.
The copper-molybdenum porphyry projects align with Western Metallica's endeavors to diversify beyond its Spanish foothold.
CEO Gregory Duras told investors that the new projects complement its existing portfolio with highly prospective assets in an attractive region for investment.
“Both projects lie on a copper-porphyry belt that has seen notable exploration and production success, but with much of the central and northern portions of the belt remaining significantly under-explored and, therefore, a region of compelling interest,” Duras said in a statement.
“Given the strength of the company’s balance sheet and the current positive market dynamics for copper, this is an opportune time for the company to make this strategic acquisition.”
Under the terms of the agreement, Western Metallica will acquire all outstanding shares of Consolidated Copper. The acquisition involves the exchange of 20 million common shares of Western Metallica and five million common share purchase warrants exercisable at $0.10 each, valid until the earlier of one year from issuance or within 20 days of written notice from the company.
Western Metallica's timing is advantageous, capitalizing on favorable market conditions and an anticipated surge in copper demand as the world transitions towards cleaner energy sources.
The Toronto-based firm’s portfolio also includes its 100% owned Nueva Celti copper property in the Ossa Morena belt in Andalusia, Spain, and three other Spanish gold projects in the Navelgas Gold Belt in Asturias.
Contact Angela at angela@proactiveinvestors.com
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