Faraday Copper shares rally on financing news
Faraday Copper Corp. [FDY-TSX, CPPKF-OTCQX] is raising $20 million from a bought deal financing with proceeds earmarked for its Copper Creek project in Arizona.
The company said the offering will consist of 25 million common shares priced at 80 cents each. However, the proceeds could be larger as the underwriters have been granted an option to purchase an additional 3.75 million common shares to cover over-allotments, if any. That option can be exercised for 30 days after the closing date, which is expected to occur on May 30, 2024, and could generate additional proceeds of $3.0 million.
Faraday Copper shares advanced on the news, rising 3.9% or $0.03 to 79 cents. The shares currently trade in a 52-week range of 90 cents and 46.5 cents.
 Faraday is a well-funded Canadian exploration company with a focus on its Copper Creek project, which it describes as one of the largest undeveloped copper projects in North America with open pit and bulk mining potential.
The property is located in Pinal County less than two hours northeast of Tucson, and in the heart of a major northwest-trending belt, which includes well-known copper mines in the Miami-Globe and Ray mining districts, with a major east-northeast trending copper belt made evident by the former BHP Kalamazoo mine in San Manuel, Arizona.
The exploration site covers 41 square kilometres and has a rich history of exploration and mining across patented and unpatented claims. Copper Creek hosts multiple breccia porphyry copper deposits. Two historic copper and molybdenum mineral resource estimates were prepared in accordance with the Canadian Institute of Mining (CIM) standards, identifying the economic potential for both open pit and underground scenarios.
Total measured and indicated resources (open pit and underground) stand at 355.1 million tonnes of grade 0.50% copper and 0.008% molybdenum and 1.3 g/t silver or 0.53% Copper equivalent (CuEq) or 4,126.3 (Mlbs) CuEq).
In a recent press release, Faraday President and CEO Paul Harbidge said he was encouraged by the success of a Phase 11 drill program, which confirmed the company’s view that there is significant upside to the existing mineral resource estimate.
Back in January, 2023, the company announced the results from two drill holes. Hole FCD-22-016 intersected 33.77 metres of 3.43% copper and 2.53 g/t silver from 38.10 metres. This interval is within a larger intersection of 65.20 metres of 1.88% copper and 1.56 g/t silver from 38.10 metres.
More recently, the company said five drill holes from its Phase 111 program at Copper Creek continue to demonstrate the exploration potential of the project on a number of fronts. As part of the Phase 11 program, 27 drill holes have been completed and results for 19 have been released. The current focus of drilling is in on the near-surface breccias in the American Eagle area of the project.