Canadian Copper secures up to $70M to develop New Brunswick complex

Canadian Copper (CSE: CCI) has secured up to C$96 million ($70 million) to advance the development of its Murray Brook project in New Brunswick as well as the buildout of the nearby Caribou processing plant.

On Tuesday, the company announced that both OR Royalties (TSX: OR) and Ocean Partners UK have committed to funding the project and associated facility, which together form the larger Bathurst mining complex.

The funding, Canadian Copper says, represents “a significant de-risking milestone” for the company. According to CEO Simon Quick, the proceeds would cover the project’s PEA capital expenditure requirements, allowing the team to focus on securing the remaining permit approvals.

Acquired in 2024, Murray Brook is Canadian Copper’s flagship project and a central component of its strategy to build a near-term producer. The deposit hosts an estimated resource (measured and indicated) of 21.1 million tonnes grading 0.45% copper, for 211.7 million lb. of contained metal. The deposit also holds significant zinc resources, as well as gold and silver.

According to the company website, this resource makes Murray Brook the largest undeveloped VMS (volcanogenic massive sulphide) deposit in the province.

Funding terms

As part of the funding commitment, OR Royalties would provide $38.35 million to Canadian Copper in exchange for a 20% life-of-mine payable silver and gold stream from the Bathurst complex. Ocean Partners, currently a 17% shareholder, would provide up to $48 million in debt funding for 100% of the complex’s off-take rights.

Both parties have also committed to subscribe for Canadian Copper’s common shares for an amount up to of $10.5 million in total, with OR Royalties’ being immediate and Ocean Partners’ at a later date.

OR Royalties’ commitment is for approximately 7.31 million shares priced at $0.75 apiece — a 20% premium over the stock’s previous close — for $5.48 million. This amount, plus a $6.85 million upfront payment for the silver-gold stream, would give Canadian Copper an injection of approximately $12.33 million at closing this month.

Ocean Partners, meanwhile, is expected to either exercise over 12.72 million warrants currently held at $0.25 per share, or make an outright $5 million equity investment. Its project debt to Canadian Copper has a term of 36 months and charges interest at SOFR + 7.75% per annum.

Canadian Copper said the funding package would provide “sufficient working capital” to complete required Bathurst complex work streams, including awarding all material project tenders for this month. It would also provide financial capacity for its near-term development capital requirements, noting that 55% of the total project financing is optional at the company’s discretion.

Shares of Canadian Copper surged by more than a quarter on Tuesday, with the stock nearly hitting its all-time high of $0.82. The Toronto-based copper junior has a market capitalization of C$135.4 million ($98.4 million).