Canadian Copper-Zinc Developer Announces Buyback as Feasibility Study Draws Near

Kutcho Copper (TSX-V: KC)(OTC: KCCFF) — currently trading around C$0.90 per share — has announced that it has agreed to buy back the royalty currently held by Sumac Mines and to terminate that company’s Right of First Refusal for concentrate purchases from its 100%-owned flagship Kutcho Copper-Zinc Project located in British Columbia, Canada.

The total cost to Kutcho is US$3.2 million [to be paid in 3 installments] and provides the company with a strategic asset that will offer greater flexibility in future negotiations with other parties for potential offtake agreements. 
Kutcho CEO Vince Sorace commented via press release:

“We view the buyback as a highly accretive transaction to the Company which will provide an economic benefit to the Kutcho project that will be reflected in the upcoming feasibility study. In addition, termination of the Sumac ROFR gives the Company full flexibility to engage freely in strategic discussions with respect to offtake and offtake financing arrangements. This will provide a more competitive environment for concentrate offtake terms given that offtake for 100% of the concentrate is now available for negotiation.”


The Kutcho project is situated in a prolific mining district in northwestern British Columbia that includes Pretium’s Bruce Jack mine, Seabridge’s KSM project, and Imperial Metals’ Red Chris mine.
Earlier this year, Kutcho put out an updated mineral resource estimate showing an 8% increase in tonnage in the Measured & Indicated (M&I) category and a 24% increase in the Inferred category. 
That estimate chimed in at a very robust 18.6 million tonnes M&I at 2.58% copper equivalent and 13.2 million tonnes Inferred at 1.59% copper equivalent — placing the project at the upper-end of the spectrum tonnage-wise for VMS deposits. 
After a bit of number crunching, we’re talking around 1.5 billion pounds of copper equivalent. And with copper trading firmly above US$4.25 per pound, the upcoming Feasibility Study should go a long way in determining the potential value and mine-life of the project based on higher metals prices than what was used in earlier studies.

The KC share-price has been trending upward of late, and a further rerating to the upside may be on the near-term horizon if the forthcoming feasibility numbers are in line with company expectations in what looks to be a rising commodities market for the red metal.

Be sure to check out our feature report on Kutcho Copper here.

Yours in profits,


Mike Fagan

Mike Fagan
Editor, Resource Stock Digest

Mike Fagan has mining in his blood. As a teenager he staked countless gold and silver properties in Nevada alongside his dad, Brian Fagan, who created the Prospect Generator model that’s still widely used today in the resource space. One of those staking projects was put into production by a major Canadian mining company — a truly rare and profitable experience. That background uniquely qualifies him as a mining stock speculator. One of the most well-known names in the business, Mike is now putting that experience to use for the benefit of Resource Stock Digest and Hard Asset Digest readers.

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