Cooper Metals Ltd. has agreed to acquire an 85 per cent interest in the Colet copper project, located on Negros Island in the Philippines.
Cooper has entered into a binding share sale agreement with the shareholders of Chalterra to acquire an 85 per cent interest in Chalterra Pty Ltd. Chalterra simultaneously agreed to acquire 100 per cent of the issued capital of Colet Mining & Development Corp., which holds the mining claims comprising the Colet project.
Under the deal, Cooper will issue 82.2 million shares to Chalterra shareholders and 45 million performance rights, which converts into ordinary share on a one-for-one basis upon a mineral resource exceeding 500,000 tonnes of copper.
The acquisition provides Cooper with exposure to an advanced copper asset boasting extensive historical exploration data.
Since its discovery in the late 1960s, previous operators have completed over 124,000 metres of drilling across the project’s two shallow porphyry deposits, Don Jose and A1.
In 2012, a comprehensive technical study evaluated the potential for a conventional open pit and flotation operation based on a historical JORC 2004 estimate of 339 million tonnes at 0.35 per cent copper, containing 1.19 million tonnes of copper.
“The Colet copper project is an exciting opportunity for Cooper,” said Cooper Metals Executive Director, Tim Armstrong.
“At a time when copper supply is tightening and new discoveries and approvals lag, it is our view that assets like this are becoming increasingly scarce and are of strategic value.”
The project complements Cooper’s existing Australian copper and gold portfolio across Mt Isa East, Pyramid, and Goro.
The transaction requires shareholder approval at a yet-to-be determined general meeting.
To fund the transaction and initiate exploration, Cooper has launched a AU$4.85 million capital raising at an issue price of 7.5 cents per share.
This includes a AU$2.15 million single-tranche placement backed by firm commitments and a fully underwritten, one-for-four non-renounceable entitlement offer to raise AU$2.7 million.
Eligible shareholders will also receive one free attaching option exercisable at 15 cents for every four shares subscribed.
Cooper’s immediate focus on Negros Island will involve community engagement, environmental baseline studies, surface mapping, and confirmation drilling.
The company aims to validate historical data to publish a maiden mineral resource estimate compliant with the JORC Code 2012, while testing for prospective extensions and adjacent gold targets.
