Canadian Copper (CSE: CCI) has entered into an offtake agreement for copper concentrates from its Murray Brook deposit and an unsecured credit facility with Ocean Partners UK. The offtake deal covers one-third of production, and the loan is for up to C$2 million ($1.5 million).
The purpose of the credit facility is to satisfy the final Murray Brook acquisition condition and replace an existing C$2 million environmental bond with the New Brunswick government. Mine lease ownership and title transfers require ministerial approval under the Mining Act in New Brunswick. With the minister’s consent, ownership and title will transfer to Canadian Copper.
Canadian Copper earned a 28% interest in the Murray Brook copper-zinc deposit in New Brunswick’s Bathurst camp from Metalquest Mining (TSXV: MQM). Canadian Copper further arranged last summer to buy out 72% owner Votorantim Metals Canada, and when the title is transferred, Canadian Copper will be the 100% owner.
As part of the offtake agreement, Ocean Partners will purchase a minimum of one-third of the Murray Brook copper concentrate at market rates and has been granted right of first refusal for the remainder of the production.
The Murray Brook project has measured and indicated sulphide resources of 21.1 million tonnes grading 0.45% copper (211.7 million lb.) and 2.49% zinc (1.2 million lb.) plus lead, gold and silver. Taken together, the copper-equivalent grade in the M+I resource is 1.41% or stated in zinc-equivalent terms, it is 8.63%. There is also an inferred resource of 110,000 tonnes grading 0.41% copper and 1.82% zinc.
Canadian Copper is also drilling the early-stage exploration project at Murray Brook West. A copper stringer zone has been traced over 180 metres at the surface and to a depth of 170 metres. It remains open along strike and at depth.
