NorthWest Copper (TSX-V:NWST) Corp has announced that it is consolidating its ownership of the Kwanika copper-gold project in British Columbia.
The company will purchase all of joint venture partner POSCO International Corporation’s (POSCO) 31% remaining interest in Kwanika Copper Corporation (KCC) for a total consideration of C$11 million, payable in NorthWest shares.
KCC is a joint venture corporation co-owned by NorthWest and POSCO.
READ: NorthWest Copper intersects more high-grade, copper-gold porphyry mineralization at its Kwanika deposit in BC
At the closing of the transaction, KCC will become a wholly-owned subsidiary of NorthWest, giving the Vancouver-based firm a 100% interest in Kwanika.
“Consolidating ownership of our Kwanika project is a huge positive step for the company, allowing all of our successful exploration and development efforts to flow to our shareholders,” NorthWest CEO Peter Bell said in a statement.
“We thank POSCO for their dedication in advancing Kwanika to date and look forward to welcoming them as cornerstone shareholders of NorthWest going forward. Achieving consolidation of Kwanika has been a goal of NorthWest Copper (TSX-V:NWST) since the company was formed in March.”
NorthWest will issue to POSCO a total of $11 million in shares in three tranches over a period of about four months, with the final tranche expected to be issued in April 2022.
Separately, NorthWest said it had issued 555,672 shares of the company to Teck Resources Ltd (TSX:TCK.B) to satisfy payment obligations owed under a joint venture interest purchase agreement in the Lorraine copper-gold project.
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