Sep 21, 2021

World Copper inks deal for Cardero’s US copper-oxide project

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Copper-focused exploration company World Copper inks agreement to take on Cardero Resources and its advanced-stage copper-oxide project in Arizona, US

Monday saw the announcement from World Copper that it had successfully signed to take on Cardero Resource Corp., bringing with it a new opportunity to increase its annual production output in the form of its Zonia copper-oxide project located in Arizona, US. The all-stock deal, inked earlier this year, sees Cardero shareholders gain a welcome 40% of World Copper’s shares with the leftover 60% remaining comfortably with World Copper’s current shareholders. 

The Zonia project is no small acquisition. World Copper has just succeeded in getting its hands on a total of 261 mineral claims and state surface rights, resulting in a whopping 4,280 acres of opportunity. Previously mined in the 1970s, Zonia already boasts drilling of over 50,000 metres and hefty amounts of in-depth engineering already having taken place. 

The new copper acquisition comes at the right time for both parties involved

World Copper’s CEO, Nolan Peterson, is confident that the company’s acquisition is a step in the right direction to increase the company’s value.

“The signing of the definitive agreement with Cardero is another milestone for World Copper and one that will bring significant value to our shareholders. Our team sees upside potential at Zonia that has, to this point been unrealised, including a low-cost development and permitting path.

“We will apply the same knowledge and expertise to Zonia, as we have to our Escalones property, and work to advance and de-risk the project going forward.”

World Copper’s opportunity grows as it takes on its new Zonia project

Currently, the Zonia project is predicted to hold approximately 15.6 million measured tonnes grading 0.43% Cu, 61.4 million indicated tonnes grading 0.31% Cu, and 27.2 million inferred tonnes grading 0.28% Cu. On top of this, a 2018 study detailed a plan and strategy for the mine project that, if applied successfully, could result in cutting down the project timeline - saving resources and saving precious money - and an after-tax NPV of around US$175mn. 

The acquisition comes as a more-than-welcome addition to World Copper’s assets, following the company’s shares recently falling by roughly 2.3%, resulting in its market value totalling US$14.4mn. Mirroring a similar hit, Cardero’s stock dipped by 7.1% to US$7.1mn market capitalisation. Perhaps Cardero’s adoption into World Copper’s assets is exactly what both companies needed to revamp their growth and renew their strategies.

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