Wheaton On-Board as Copper Project Moves Closer to Feasibility

Kutcho Copper (TSX-V: KC)(OTC: KCCFF) has announced that Wheaton Precious Metals (NASDAQ: WPM) — an industry leading royalty and streaming company — has reiterated its support for the Kutcho Copper-Zinc Project by allowing for deferred interest payments due by Kutcho until the end of 2023.

Wheaton has been involved since 2017 when they provided Kutcho with a C$100 million financing to complete the project acquisition. The package included a C$20 million convertible loan, C$7 million to fund the current feasibility study, and C$58 million in development capital. 
Under a scenario where Kutcho successfully reaches a 4,500 tonne per day operation, Wheaton would pay an additional C$20 million.
In exchange, Wheaton is to receive a stream of 5.6 million ounces of silver and 51,000 ounces of gold from the mine’s eventual production. After Kutcho meets those volumes, Wheaton’s stream would then decrease to 66.67% of silver and gold for the life of the mine.
Kutcho CEO Vince Sorace commented via press release:

“Wheaton continues to show their support for the Kutcho project by allowing us to defer interest payments due under the convertible debenture until the end of 2023. The Company appreciates their commitment and validation to this great project as we move towards completion of our feasibility study.”

From Wheaton’s actions, it’s clear they remain fully supportive of the Kutcho project — and for Kutcho Copper, it’s certainly a great partner to have.

The market has been reacting favorably to Kutcho’s recent progress as noted in the company’s trading pattern (below). The stock is nearing its 52-week high of C$0.90 and is up approximately 60% from the C$0.50 range a couple of weeks ago to currently right around C$0.80 per share. 
With copper trading north of US$4 per pound, Kutcho Copper stands out as a well-positioned junior with active drilling in the Tier-1 mining jurisdiction of northern British Columbia, Canada, with a feasibility study on the way.

Be sure to click here for our feature report on Kutcho Copper.

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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