Faraday Copper unveils $30 million bought deal
Faraday Copper Corp [FDY-TSX] has announced a $30 million bought deal financing, with proceeds earmarked for the advancement of its Copper Creek project in Arizona. The company will use part of the proceeds to acquire certain ranching land located adjacent to the Copper Creek project.
The company said an underwriting syndicate has pledged to purchase 37.5 million shares on a bought deal basis for 80 cents each. Faraday said it will grant the underwriters an option to purchase an additional 5.62 million shares to cover overallotments at the same price, potentially increasing the proceeds by up to $4.5 million. That option is exercisable at any time prior to the date that is 30 days after the financing closes, likely on February 14, 2023.
News of the bought deal financing came after the close of trading on February 2, 2023, when Faraday shares closed at 84 cents. The shares are currently trading in a 52-week range of $1.00 and 35 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 confirms the company’s view that there is significant upside to the existing mineral resource estimate.
On January 31, 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.
The company said 14 drill holes have been completed to date. Three have been released so far. Additional results will be released as they are received.