Interra Copper Corp. (IMCX:CSE; IMIMF:OTCQB; 3MX:FRA) announced in a press release that it had executed the option it negotiated for a maximum of 80% earn-in and joint venture agreement on ArcWest Exploration Inc.'s (AWX:TSX.V) Rip Project in British Columbia, Canada. The company reports that the project, located near Houston and Burns Lake, is 2,309 hectares large and contains porphyry copper and molybdenum along the lucrative Stikine Terrane.
The company reports that the option agreement will run for eight years, and in the first stage, set to last for four years, the company may earn a 60% beneficial ownership in the Rip Project. The press release stated that this would involve the company issuing 1,050,000 shares, CA$2,000,000 worth of exploration and geological expenses, and payment of CA$100,000 to Arcwest.
The press release detailed that the second stage would require a Feasibility Study and that completing this step would allow Interra to earn 20% more, making the earn-in total 80%. This second phase will also require the company to pay Arcwest to pay CA$250,000 per year and details the possibility of a three year extension that would require CA$100,000 per year in addition to the Phase 2 payment.
Interra stated that the first work program funding requirement is at least CA$300,000, due by December 31, 2024, and the company has already begun soil sampling, aerial surveys, and topography studies.
Massive Copper Shortfall as Demand Rises
Rick Mills of Ahead of the Herd reviewed the copper market on November 18, 2023, and stated that he believes the world is still looking at a massive copper shortfall in light of green energy goals. Mills stated that the shortage is so great that European electric vehicle goals alone require twice as much copper as the United States produced in 2022 and half of Chile's annual copper production.
Technical analyst Clive Maund rated the company as an "Immediate Speculative Buy" for investors.
Mills commented, "Simply put, electrification doesn't happen without copper, the heart of the global energy economy."
Any Home of Reuters reported on September 19, 2023, that copper stocks had increased to twice what they were worth in May of 2022.
According to Home, this happened as copper inventories increased following the summer mining season: "Almost 100,000 metric tons of copper have been warranted in the LME warehouse network since the middle of July, lifting headline stocks to 149,600 metric tons. Registered inventory was just 54,225 metric tons on July 12."
Immediate Speculative Buy
Technical analyst Clive Maund reviewed the company on February 23, 2023, and rated the company as an "Immediate Speculative Buy" for investors.
When discussing the company's stock, he stated, "There was a flurry of heavy buying about a week ago that drove up the Accumulation line, which is a positive sign, and its moving averages are now in bullish alignment, which makes a breakout more likely."
According to the company's investor presentation, it has a number of catalysts for the Tres Marias project, including follow-up on areas of interest identified during the last round of drilling and 8,000 meters of drilling warranted for the next three years.
Streetwise Ownership Overview*
Ownership and Share Structure
Reuters provided a breakdown of the company's ownership and share structure, where management and insiders own approximately 10.45% of the company.
Reuters reports that Chairman and Interim CEO Richard Mark Gittleman owns 2.29% of the company with 0.56 million shares, Director Mike Ciricillo owns 2.23% of the company with 0.54 million shares, Christopher Naas owns 1.13% of the company with 0.28 million shares, Director Mark Daniel Cruise owns 0.52% of the company with 0.13 million shares, Director Richard Levielle owns 0.52% of the company with 0.13 million shares, Director and COO Jason A. Nickel owns 0.34% of the company with 0.08 million shares, CPA CA Paul H. Robertson owns 0.11% of the company with 0.03 million shares, and Technical Advisor Thomas E. Gregory Hawkins owns 0.05% of the company with 0.01 million shares.
Reuters reported no institutional investors.
According to Reuters, there are 24.33 million shares outstanding and 21.79 million free float traded shares, while the company has a market cap of CA$4.83 and trades in the 52-week period between CA$0.18 and CA$0.92.
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- Interra Copper Corp. has a consulting relationship with an affiliate of Streetwise Reports, and pays a monthly consulting fee between US$8,000 and US$20,000.
- As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Interra Copper Corp.
- Amanda Duvall wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
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