Canadian Copper has signed a term sheet and exclusivity agreement, granting the company the exclusive right to acquire the Caribou processing plant complex in New Brunswick, Canada.
This strategic move is set to expedite the development of the Murray Brook copper-zinc-lead-silver deposit, the company’s flagship asset within the Bathurst Mining Camp in New Brunswick, by fully utilising the milling capacity of the Caribou processing plant.
Murray Brook, covering 5,846ha, is situated south-west of the Caribou mine on the Caribou Horizon trend.
Canadian Copper secured 100% ownership of the Murray Brook deposit in January 2024.
The term sheet, signed yesterday (28 October), outlines a purchase price of $6.22m.
An initial deposit of $225,000 has been made, $125,000 of which is refundable against the purchase price.
The closing date for the transaction is set for 11 July 2025.
Canadian Copper CEO Simon Quick said: "The proposed transaction creates important synergies for Canadian Copper. By integrating our large Murray Brook deposit with an already permitted and constructed Caribou complex that operated as recently as August 2022, we aim to significantly reduce the schedule, capital cost, and permitting time required to produce copper, zinc, and lead concentrate from Murray Brook.
“The combination of a large open-pit polymetallic mineral resource with a nearby processing plant represents a material acceleration and derisking effort to create a new leader in critical metals production in Eastern Canada."
The Caribou complex, which includes a 3,000-tonne-per-day milling facility and an underground mine with historical reserves of 4.5 million tonnes, ceased operations in August 2022.
Since January 2023, the New Brunswick government has managed the site's care and maintenance.
A comprehensive audit of the Caribou complex was completed by the company and several consultants on 2 October 2024.
Three groups have been engaged to design, develop, and process the Murray Brook deposit at the Caribou complex under a combined operation strategy.
These efforts are aimed at verifying the company's internal estimates, which will inform a preliminary economic assessment scheduled for the first half of 2025.
Ausenco Engineering Canada is tasked with process plant validation and optimisation, as well as financial model preparation for the combined operation. Pierre Lacombe P. Eng will supervise metallurgical test work and review plant design.
P&E Mining Consultants is responsible for mineral resource modelling and site layout activities.
