Copper One raising $9.75 million for Nevada drilling

Copper One Resources Corp. [CEXY-CSE, CEXYF-OTCID, IW8-FSE, A42AGR] said it plans to raise $9.75 million from a non-brokered special warrant offering and will use the proceeds to accelerate exploration and development activities at its flagship Majuba Hill copper-silver-gold project in Nevada.

The company said the non-brokered private placement will consist of up to 19.5 million special warrants priced at 50 cent each. Each special warrant will automatically convert, for no additional consideration, into one unit of the company on the date that is the earlier of:

The third business day from the date the company files a prospectus supplement to a short form base shelf prospectus qualifying the units issuable on conversion of the special warrants, and the date that is four months and one day after the closing of the offering.

Each unit will consist of one common share and one half of one share purchase warrant, with each warrant exercisable into one additional share at an exercise price of 62 cents for two years from the closing date. However, the expiry date can be accelerated if the shares close at or above $1.25 on the Canadian Securities Exchange for five consecutive trading days.

The warrants will be subject to a 10% blocker provision that restricts the exercise of any warrants, in the event that such exercise would results in the applicable security holder owning 10% or more of the issued and outstanding shares at such time.

Copper One shares were unchanged at 62 cents Monday and trade in a 52-week range of 76 cents and 50 cents.

Copper One is focused on advancing copper, copper/silver/gold, and critical minerals projects in North America. The Majuba Hill project is a historical producer located around 251 kilometres from Reno, Nevada. The company said it has identified indications of a potentially significant copper-gold-silver mineralized system on the property. In a recent press release, the company said it has commenced a 10,000-foot (3,048-metre) drill program that aims to advance the project towards a maiden mineral resource estimate. The program includes an initial ExploreTech AI-designed drill core hole that aims to extend approximately 762 metres and will test AI-driven modeling of geophysics and follow up on historic drill holes that intersected significant copper-silver-gold mineralization. The hole was designed using ExploreTech’s AI-driven modelling platform in combination with Copper One’s extensive Majuba Hill database.

The company also holds a option to earn up to a 100% interest in the Redhill property in British Columbia. The project covers 4,736 hectares across 18 mineral claims and is described as a copper-focused exploration opportunity located south of Ashcroft in the Kamloops Mining District. Redhill is prospective for Volcanogenic Massive Sulphides (VMS). The company also holds a 100% interest in the Redonda copper-molybdenum project near Campbell River, B.C., covering 2,746 hectares across nine mineral claims.