Faraday Copper (TSX: FDY; US-OTC: CPPKF) shares rose 6.6% on news the company is raising $20 million in a bought deal financing for its Copper Creek project in Arizona.
The junior’s shares traded at 81¢ apiece this afternoon for a $143.4 million market capitalization.
Ventum Financial (formerly PI Financial), Canaccord Genuity and TD Securities are acting as co-lead underwriters and have agreed to buy 25 million common shares of Faraday at 80¢ per share.
Faraday says Copper Creek is one of the largest undeveloped copper projects in the United States. It hosts a vast, 3-km-long porphyry deposit that has a measured and indicated copper resource totalling 4.2 billion lb., contained within 422 million tonnes grading 0.45% copper.
A May 2023 preliminary economic assessment gave Copper Creek a post-tax net present value (discounted at 7%) of US$713 million and an internal rate of return of 16%. Initial capital is estimated at US$798 million, with a construction period of two years. The payback period is just over 4 years.
The operation, which will initially start as an open pit before going underground, will have a life of 32 years, producing 3.2 billion lb. of copper, plus 45.1 million lb. of molybdenum and 9.7 million oz. of silver.
The entire project covers 73 sq. km. in an area that has a rich history of exploration and mining dating back to the 1860s. Approximately 360,000 tonnes of high-grade ore have been extracted from the site to date.
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