Mining Technology

Daily Newsletter

11 August 2023

Daily Newsletter

Western Metallica takes over two Peruvian copper assets

The two projects are considered to be highly prospective with presence of copper and molybdenum.

Ontario-based junior explorer Western Metallica Resources has agreed to acquire Consolidated Copper, a Canadian company that holds mineral claims in Peru.

Consolidated Copper owns a 100% interest in Caña Brava and Turmalina, two highly prospective copper-molybdenum porphyry projects in northern Peru. Through this acquisition, Western Metallica will now own the two projects.

Western Metallica agreed to buy 100% of Consolidated Copper’s shares in exchange for 20 million of its shares and five million share purchase warrants. Each warrant entitles the holder to purchase one additional share at an exercise price of $0.1 under certain conditions.

According to Western Metallica, the purchase of the two projects will provide access to a region known for its mineral potential.

Peru is considered to be one of the largest copper producers globally. Furthermore, its mining-friendly jurisdiction makes it an attractive mining destination.

The Caña Brava project covers 5,100 hectares (ha) of land and is located in the La Libertad Department of northern coastal Peru.

The highly prospective copper-molybdenum project is claimed to contain at least three partially eroded porphyry centres. There is also a potential for a medium-sized cluster of porphyry copper-molybdenum systems at the project.

The Turmalina project is located in the Piura region of the northern coastal region of the country. Covering 2,600ha, it is located at an elevation of 2,600m in the western Cordillera of the Peruvian Andes.

The project contains widespread porphyry-style phyllic alteration, sulfidic veining and several small quartz-tourmaline breccia pipes. These suggest the potential for a very large porphyry copper-molybdenum system under the breccia systems.

Western Metallica Resources CEO and director Gregory Duras said: “Both projects lie on a copper-porphyry belt that has seen notable exploration and production success, but with much of the central and northern portions of the belt remaining significantly under-explored and, therefore, a region of compelling interest.

“Given the strength of the company’s balance sheet and the current positive market dynamics for copper, this is an opportune time for the company to make this strategic acquisition.”

ESG 2.0 marks a shift towards stricter environmental rules

ESG is moving into a different era, which we call ESG 2.0. While ESG 1.0 was driven by voluntary corporate action, spurred by pressure from activist consumers and investors, ESG 2.0 is being driven by a new wave of government policies. The EU has taken the regulatory lead, with rules introduced or in the pipeline that will price emissions, regulate the use of the terms ‘ESG’ and ‘sustainability’ in marketing materials, and make ESG reporting mandatory. The US has taken a different approach, favoring less regulation and more financial support in the form of tax breaks for clean industry (renewables plus nuclear and hydrogen). China is planning to expand its emissions trading system to more sectors, decarbonize its heavy industry, and ramp up its use of renewables. The new policy direction is mainly motivated by the ambition to hit net zero emissions targets. But on top of this, governments are now competing for clean industry and trying to challenge China’s leadership on the production of the world’s green technologies such as solar panels and batteries, as well as the production and refinement of materials needed for energy transition such as lithium. These driving forces are leading to policy that will impact every sector, not just heavy industry, and will keep ESG near the top of the regulatory agenda over the longer term.