Northwest Copper Corp. [NWST-TSXV; NWCCF-OTCQX] has entered into an agreement with POSCO International Corp. whereby Northwest will purchase all of POSCO’s approximately 31% remaining interest in Kwanika Copper Corp. (KCC) for total consideration of $11-million, payable in shares of Northwest. KCC is a joint venture corporation co-owned by Northwest (approximately 68.98%) and POSCO (~31.02%), which in turn owns 100% of the Kwanika project located in the Quesnel Trough, northern British Columbia
At closing of the transaction, KCC will become a wholly owned subsidiary of Northwest and Northwest will acquire a 100% interest in the Kwanika project. The shareholder joint venture agreement as among the parties will terminate and POSCO will not retain any interest or rights, including offtake rights, on the Kwanika project following the transaction.
Peter Bell, president and CEO of Northwest Copper, stated: “Consolidating ownership of our Kwanika project is a huge positive step for the company, allowing all of our successful exploration and development efforts to flow to our shareholders. We thank POSCO for their dedication in advancing Kwanika to date and look forward to welcoming them as cornerstone shareholders of Northwest going forward. Achieving consolidation of Kwanika has been a goal of Northwest Copper since the company was formed in March.”
Under the terms of the transaction, Northwest will issue to POSCO a total of $11-million in consideration shares in three tranches over approximately four months, subject to approval by the TSX Venture Exchange.
Northwest has issued 555,672 common shares of the company to Teck Resources Ltd. [TECK.A, TECK.B-TSX; TECK-NYSE] with a fair market value of $500,000 based on the company’s 20-day VWAP (volume-weighted average price) of 90 cents/share. The shares have been issued to satisfy payment obligations owed to Teck under a joint venture interest purchase agreement whereby wholly owned subsidiaries of the company acquired Teck’s 51% joint venture interest in the Lorraine copper-gold project. The common shares are subject to a statutory four-month-and-one-day hold, expiring March 26, 2022.