Granite Creek Copper Ltd.Â [GCX-TSXV] reached an agreement to acquire all the outstanding shares of Copper North Mining Corp. [COLI-TSXV] it doesnâ€™t already own in a move that will create a copper-focused exploration and development company in the Yukon.
The announcement came on a day when the price of copper for delivery in December trading on the Comex market in New York was priced at US$3.06/lb, the highest level since June, 2018. The price marks an increase of 58% from US$2.10/lb on March 23, 2020.
Granite Creek has been focused on the 100%-owned Stu copper-gold-silver project, which covers 111 km2 adjacent to Pembridge Resources Plcâ€™sÂ [PERE-LSE] high-grade Minto copper gold-silver mine and Copper Northâ€™s advanced stage Carmacks copper-gold-silver project in the Yukonâ€™s Minto Copper District.
When the agreement is completed, Granite Creek will control a large regional land package, including the advanced-stage Carmacks Copper Project and the highly perspective Stu Project. It said the combined land package will cover approximately 176 km2 within the Minto Copper District.
Under the terms, Granite Creek will acquire all the outstanding shares of Copper North it doesnâ€™t already own via an all-share transaction in which Copper North shareholders will receive one common share of Granite Creek for every two-and-one half Copper North shares.
All outstanding warrants and options of Copper North will be exchanged for warrants and options of Granite Creek at the exchange ratio.
The Copper North options will be governed by, and deemed to be outstanding under Granite Creekâ€™s existing long-term performance incentive plan.
Based on a price of $0.15 per Granite Creek share (closing price August 28, 2020), the exchange ratio represents an offer price of $0.06 per Copper North share, and a 20% premium to the closing price of Copper North shares August 28, 2020.
On Tuesday September 1, Granite Creek jumped 3.13% or $0.01 to 17 cents on a volume of 46,750 shares traded.
Copper North rose 20% or $0.01 to $0.06 on a volume of 102,000 shares traded.