Mentioned:
One of the biggest players in the mining business is launching a new company for copper in America. And they’re partnering up with a publicly traded company in Canada to do it.
What’s happening:
- Kodiak Copper (TSXV: KDK) and Teck Resources (NYSE: TECK) have entered into a deal to form a new copper company known as Kay Copper to focus on projects located solely in the United States of America
By the numbers:
- Once Kay Copper is fully launched it is expected that both Teck Resources and Kodiak Copper will each own a 28% equity stake
Why it matters:
- Kodiak Copper and Teck Resources are launching Kay Copper specifically to pursue two large scale porphyry copper projects in Arizona and provide dedicated growth capital for American copper exploration
Going deeper:
- Teck Resources will sell their Copper Hill project located in Arizona to the newly formed company and Kodiak Copper will sell their Mohave project in Arizona to Kay Copper as part of the deal
- Both Kodiak Copper and Teck Resources have publicly stated that Kay Copper will be a publicly traded company in Canada following the successful completion of their property acquisitions and financing rounds
