Kutcho Copper (KC.V) has presented the market a signed Exploration Agreement with the Dease River First Nation (representing the Kaska nation) to set up a framework for the upcoming exploration programs on Kutcho’s namesake copper project in British Columbia. The agreement calls for a respectful and open collaboration between the company and the First Nations, with Kutcho Copper pledging to make sure local Kaska members will get access to employment opportunities. As part of the deal, Kutcho Copper has issued 300,000 warrants with a strike price of C$1.00 (a 200% premium to the current share price) and valid for five years.
Kutcho is also gearing up to publish an updated resource estimate at Kutcho which will be the basis for the feasibility study which is ‘well underway’ and should be completed this summer. Subsequent to the publication of the resource update, Kutcho should also be in a position to provide more details on the metallurgical test programs it has been conducting over the past year to find the optimal way to recover the metals from the rock. Once those two elements will have been published, we should be in a position to have a better idea of what the feasibility study will look like, but we aren’t expecting any major changes compared to the Pre-Feasibility Study from 2017.
Kutcho Copper has also borrowed C$1.5M from an arms-length party for a period of one year and with a 5% coupon. Kutcho Copper will also issue 500,000 bonus shares which means the total cost of the one-year facility is around 16% (using a share price of C$0.33 for the bonus shares). This should enable the company to complete its feasibility study and explore alternative sources of funding.
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The author has a long position in Kutcho Copper. Kutcho is a sponsor of the website. Please read the disclaimer
