The Opemiska copper complex – a former Falconbridge asset – has a new owner, which intends to fast-track the two past-producing copper mines near Chapais, Quebec, as part of a strategy of investing in metals that stand to benefit from a move to battery-powered vehicles.
TSX-V-listed Power Ore announced on Wednesday that it would buy the Opemiska complex, which operated from 1953 to 1991, producing a total of 23-million tonnes at 2.4% copper and 0.3 g/t gold.
The company labelled the acquisition as “transformative”, noting that it had been looking for exposure to copper and other metals that it believed would benefit from increasing demand from traditional uses, as well as the increasing demand from electric vehicles and renewable energy technologies.
“This is a great opportunity for all stakeholders in that the Opemiska copper complex has the potential to be fast-tracked given its jurisdiction, infrastructure, location and a host of other advantages. Another key point for this acquisition is Opemiska's database, which is a proverbial gold mine of data which we will utilise to determine the potential for an openpit mining scenario in what was originally a high-grade underground mine,” said Power Ore CEO Stephen Stewart.
Opemiska was one of the main copper producers of Falconbridge, which in 2006 was absorbed by Swiss-based miner Xstrata, now Glencore. In 1993, private company Ex-In acquired the property and spent considerable resources on digitising the historical data, as well as conducting further prospecting, exploration and drilling.
To acquire the Opemiska copper complex, Power Ore will issue, six months after the effective date, 1.5-million shares, 1.5-million warrants ($0.20 exercise price) and pay $50 000 to Ex-In. By the eighteenth month after the effective date, Power Ore will incur $500 000 in work expenditures on Opemiska, issue 1.5-million shares and 1.5-million warrants ($0.25 exercise price) and pay $150 000 to Ex-In. By the thirtieth month after the effective date, Power Ore will incur an additional $1-million work expenditures on Opemiska, issue two-million shares and two-million warrants ($0.30 exercise price) and pay $300 000 to Ex-In. By the forty-second month after the effective date, Power Ore will incur an additional $1.5-million on Opemiska, issue three-million shares and three-million warrants ($0.35 exercise price) and pay $1-million to Ex-In.
The Opemiska complex is subject to a 2% net smelter royalty, 50% of which can be repurchased by Power Ore at a cost of $4.5-million.