Kutcho Copper seeks more deposits at B.C. VMS project
Kutcho Copper Corp. [KC-TSXV, KCCFF-OTC] has arranged a non-brokered private placement financing that is expected to raise $4 million with proceeds earmarked for the company’s flagship Kutcho high-grade copper-zinc project in British Columbia.
The company recently completed a feasibility study on the Kutcho project and is advancing permitting with the objective of getting a positive construction decision.
The company said the private placement will consist of 8.0 million units priced at 25 cents per unit for gross proceeds of $2 million and 6.7 million units consist of flow-through units at 30 cents per unit, for gross proceeds of $2 million. Each unit will consist of one common share and one-half transferable share purchase warrant, exercisable at 40 cents per share for 24 months from the date of closing.
Each flow-through unit will consist of one flow-through share and one-half transferable warrant, exercisable at 45 cents per share for 24 months from the date of closing.
Kutcho said it could accelerate the expiry date of the warrants if the common share trading price is equal to or greater than 60 cents for a period of 10 consecutive days.
News of the financing came after the close of trading on April 17, 2023 when Kutcho shares closed at 29 cents. The shares are currently trading in a 52-week range of 62 cents and $0.18.
Kutcho Copper, formerly known as Desert Star Resources Ltd., acquired a 100% interest in the Kutcho project from Capstone Mining Corp. (CS-TSX) in June 2017. Capstone now owns a 13.5% stake in Kutcho Copper.
The Kutcho project is located approximately 100 kilometres east of Dease Lake.
Mineralization on the 17,060-hectare property is hosted in three known volcanic massive sulphide (VMS) deposits. The largest is the Main deposit. The other two are Sumac and Esso.
“This financing allows us to begin a detailed regional exploration plan as outlined in a press release on February 28, 2023,’’ said Kutcho President and CEO Vince Sorace. “The Kutcho Project has not seen any significant exploration since 1990,’’ he said. “The prospective mineral horizons that host the existing deposits repeat three times across our land position and volcanic massive sulphide (VMS) deposits typically occur in clusters along favourable horizons.’’
Sorace went on to say that with three deposits already identified along the Main-Sumac-Esso horizon, the project has the making of a substantive VMS district and has the potential for discovery of completely new deposits.
In December, 2017, the company closed a $20 million subordinated secured convertible term debt loan and a US$65 million early deposit precious metals purchase agreement with Wheaton Precious Metals Corp. (WPM-TSXV, WPM-NYSE). The deal entitled Wheaton to up to 100% of the payable silver production and up to 100% of the gold production from the Kutcho copper-zinc-silver-gold project.