World Copper Ltd (TSX-V:WCU, OTCQX:WCUFF) has closed the sale of its 0.55% gross revenue royalty (GRR) and option package on the Zonia copper oxide project to Electric Royalties.
The sale amounted to $1.55 million in cash and another two million Electric Royalties shares to Vancouver-based World Copper.
The Zonia project is located in the Walnut Grove mining district in Yavapai County, Arizona.
READ: Electric Royalties to acquire gross revenue royalty on World Copper's Arizona copper oxide project
World Copper believes that Zonia has the potential to host significantly more copper mineralization than outlined in the current resource estimate of 76.8 million tons of 0.33% copper in the measured and indicated category, and 27.2 million tons at 0.28% copper in the inferred.
The company is currently working on exploration drill targets along the margins of the Zonia deposit as well as a separate, significant copper-molybdenum-manganese in rock geochemical anomaly located approximately two kilometres north-northeast of the established resource, Zonia Norte.
"World Copper is excited to close this transaction and bring Electric Royalties on as one of Zonia's first partners,” CEO Nolan Peterson said in a statement.
“The Zonia project has robust economics and an achievable timeline to production. This initial support from Electric Royalties enables us to continue our restart of development activities at the project and carry out significant work in unlocking the project's full value.”
Electric Royalties has the right to acquire a further 0.5% GRR on Zonia for C$3 million in cash for a period of 15 months after the closing of the transaction. In addition, the company has an option to acquire a 1% GRR on the Zonia Norte deposit, adjacent to the Zonia Project, for C$3 million in cash, at any time during a period of 24 months from the date that World Copper obtains an initial technical report in respect of the Zonia Norte deposit and delivers a copy of the report to Electric Royalties.
Contact Angela at angela@proactiveinvestors.com
Follow her on Twitter @AHarmantas