- Alpha Copper (CSE:ALCU) is set to acquire the Okeover Copper project in British Columbia from Northwest Copper (TSXV:NWST)
- The project includes 12 mineral claims spanning 4,613 hectares
- The company will issue shares having a valuation of $500,000 to Northwest Copper
- Shares of Alpha Copper are unchanged at C$0.07, while shares of Northwest Copper are up 2.86 per cent to $0.18 as of 9:30 am ET
The project, which spans 4,613 hectares, includes 12 mineral claims and is roughly 20 kilometres north of Powell River, B.C.
In a news release, the Vancouver-based resource sector company stated as part of the agreement with Northwest Copper, Alpha Copper will issue the total number of shares having a valuation of $500,000.
Northwest Copper has given the company an irrevocable right of first refusal to repurchase the shares should it decide to sell them in the future.
Other terms of the agreement include: 50 per cent of the shares will be subject to a 12-month lock up. Northwest Copper will not sell, dispose or transfer the shares until released from lock-up.
Alpha Copper has also granted Northwest Copper a 2 per cent net smelt return royalty on the project, subject to the company’s buyback option of 1 per cent of the royalty for consideration of $1 million.
The announcement comes after Alpha Copper’s decision back in March to end its option agreement to acquire the Okeover project.
“We decided to terminate the option agreement based on all exploration results to date,” Darryl Jones, CEO of Alpha Copper, said in March. “After careful consideration, it became clear to us that the value of the option deal did not reflect the value of the project anymore. Rather than aligning the price and value we have chosen to focus on the assets in our portfolio that we believe have more immediate exploration upside for our company and its investors.”
In addition to its acquisition of the Okeover project, Alpha Copper has the option to earn a 60 per cent interest in the Indata copper-gold project in north-central B.C.
The company also has an option to acquire 100 per cent interest in the Star copper-gold porphyry project in BC’s Golden Triangle.
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