Copper One Resources to Acquire Sword & Gossan Property in Labrador
Copper One Resources Corp. (CSE: CEXY) has signed a purchase and sale agreement to acquire a 100% interest in the Sword & Gossan nickel-copper-cobalt properties in west-central Labrador. Under the agreement, the company will pay CAD $3.65 million in cash to 1594122 B.C. Ltd. to secure the 3,900-hectare land package, which features a historically drilled magmatic sulphide system.
The acquisition expands the company's critical metals exploration portfolio in North America. The property is located in the same geological province as the Voisey's Bay nickel-copper-cobalt mine, situated 300 kilometers to the northeast. Historical exploration on the property has identified nickel, copper, and cobalt mineralization at the surface, along with multiple high-priority electromagnetic conductors that have not yet been drill-tested.
The transaction remains subject to standard closing conditions, including due diligence, board approvals, and acceptance by the Canadian Securities Exchange. Additionally, the property is subject to an existing 2% net smelter returns royalty, half of which can be purchased by Copper One for CAD $2 million. The company must also make two advance royalty payments of CAD $200,000 on the first and second anniversaries of the agreement.
Key points
- Copper One Resources Corp. (CSE: CEXY) is acquiring a 100% interest in the Sword & Gossan properties in Labrador for CAD $3.65 million in cash.
- The 3,900-hectare property covers the historical Sword nickel-copper-cobalt project and contains multiple untested electromagnetic conductors.
- The deal requires no issuance of company securities and is subject to Canadian Securities Exchange acceptance and board approvals.
- Copper One will also pay CAD $400,000 in total advance royalties over the next two years and holds an option to buy back 1% of the existing net smelter returns royalty.
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How much is Copper One paying for the Sword & Gossan properties?
Copper One is paying an aggregate cash consideration of CAD $3.65 million. It will also make two advance royalty payments of CAD $200,000 each on the first and second anniversaries of the agreement, for an additional CAD $400,000. No shares or securities will be issued.
Where is the Sword & Gossan property located?
The property is located in west-central Labrador, approximately 90 kilometers north of Churchill Falls on the northern side of the Smallwood Reservoir. It consists of ten mineral licences covering 156 claims across approximately 3,900 hectares.
What historical exploration has been done on the property?
Previous operators conducted geophysics, surface sampling, and a two-hole drilling program between 2005 and 2007. This work identified surface nickel-copper-cobalt mineralization and multiple high-priority electromagnetic targets that remain untested.