Copper Co. With Ariz. Project Starts At-The-Market Program

World Copper Ltd. (WCU:TSX.V; WCUFF:OTCQX; 7LY0:FRA) announced it has established an at-the-market equity program (ATM program) to issue and sell common shares having an aggregate gross sales amount of up to CA$25-million to the public over an approximately two-year period.

The shares will be sold exclusively through BMO Capital Markets.

"World Copper currently intends to use the net proceeds from the ATM program to advance the Zonia project located in Arizona, United States, and for general working capital purposes," the company said in a release. "World Copper may also use all or a portion of the net proceeds to finance an acquisition or exploration on other properties or for the repayment of debt."

The volume and timing of distributions under the ATM program, if any, will be determined by the company and the common shares will be distributed at market prices prevailing at the time of each sale. As a result, prices may vary as between purchasers and during the period of distribution under the ATM program.

The equity distribution agreement, dated July 17, 2024, will be effective until either all of the shares in the program are issued and sold or July 7, 2026, unless terminated early by World Copper or BMO.

Management of the company will have the discretion to reallocate the net proceeds of the ATM program in response to developments in the company's business and other factors.

The offering of common shares under the ATM program is qualified by a prospectus supplement dated July 17, 2024, to the company's short-form base shelf prospectus and amended and restated short-form base shelf prospectus dated June 7, 2024, which were filed with the securities commissions or similar authorities in each of the provinces and territories of Canada, the company said.

The distribution agreement, prospectus supplement, and shelf prospectus are available on the SEDAR+ website.

The Catalyst: Early Production Opportunities

World Copper has two assets: Zonia in Arizona and Escalones in Chile. In May, management announced a decision to prioritize its U.S.-based assets, concentrating on advancing Zonia and targeting a production start there in three to five years. It is executing its plan for moving forward, for taking Zonia to a feasibility study then to construction.

Earlier this month, the company revealed new potential for reprocessing mineralized material from historical mine operations at Zonia. This material, located on heap leach pads from the 1970s, was originally treated to recover soluble copper.

Recent reviews by the company's newly formed Technical Advisory Committee indicate that significant quantities of copper remain unrecovered from the site. Historical reports estimate that between 65 million and 96 million pounds of copper could still be present in the heap leach pads and in-situ leach areas.

"The prospect of reprocessing historically mined mineralized material would add more value and provide additional upside to the Zonia Project, and it is a unique potential value opportunity," said World Copper Chief Executive Officer Gord Neal.

Neal emphasized that early production opportunities could significantly enhance the project's economics, increasing its net present value and reducing financial risks.

The Zonia Project itself has been significantly de-risked with over 50,000 meters of drilling completed to date and a comprehensive Preliminary Economic Assessment (PEA) indicating potential for low-cost open pit mining and heap leach processing. The most recent resource estimates highlight substantial copper resources, both indicated and inferred, totaling over 1 billion pounds of copper.

Metal's Technical Picture 'Could Not Get Any More Bullish,' Expert Says

According to Credendo, demand for copper could double by 2035, as EVs use more than three times as much of the red metal as gas-burning cars. New copper production — and investment in exploration — will be needed to fuel the supply of those vehicles in the long term, analysts have said.

"The main drivers are the revival in demand from Chinese manufacturers, the rebound of the global economy, and the boom in investments in green technologies (e.g., renewables and electric vehicles) and in AI technologies," the site reported last month.

The hunt for copper "has been accelerating, as companies involved in all parts of the copper supply chain realize the structural supply deficit facing the copper market," wrote Rick Mills, author of the newsletter Ahead of the Herd.

"They understand the need to find sources — existing mines, expansions, brownfield projects, greenfield projects, etc. — and are making deals to acquire the base metal, which is not only essential to electrification and decarbonization but industry in general," Mills wrote.

Copper climbed above US$10,000 a ton in May, based on predictions of tighter supplies and rising consumption for electric vehicles (EVs) and power grids in the transition to green energy. It was US$8,480 per ton on July 19. 

Michael Ballanger of GGM Advisory Inc. wrote for Streetwise Reports this month that "the technical picture for copper could not get any more bullish. You have a 'neutral' RSI down from 'overbought' while just entering a bullish MACD crossover and 'buy signal' along with a bullish money flow indicator."

BMI analysts believe copper deficits could grow at an extreme pace over the coming decade as the clean energy revolution takes hold, predicting prices of US$11,500 per ton by 2032, according to Stockhead.

Ownership and Share Structure

Wealth Minerals Ltd. (WML:TSX.V; WMLLF:OTCQB) owns about 11.51% of World Copper.

About 27% is owned by management and insiders, including Director Robert Kopple with 8.37% and Board Chairman Hendrik van Alphen with 1.14% or 3.25 million shares. CEO Neal holds about 0.96%. The rest is retail.

As for share structure, the company has 178.02 million outstanding shares and 93.81 million free-float traded shares, according to Reuters. 

It has a market cap of CA$27.24 million. Its 52-week trading range is CA$0.06–0.35 per share.

Important Disclosures:

1. World Copper Ltd. is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$4,000 and US$5,000.
2. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of  World Copper Ltd.
3. Steve Sobek wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
4. This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company. 

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