Prime takes piece of Western Copper

An agreement between Prime Equities International (VSE) and Teck (TSE) will result in a change in control for Western Copper Holdings (TSE).

Teck holds 2 million shares of Western Copper and plans to sell the position to Prime in return for 700,000 units.

Each unit includes one common share of Prime Equities and one warrant exercisable for two years at $5 per share.

Western Copper’s principal asset is a half interest in the Carmacks copper deposit in the Yukon.

The remaining 50% interest in Carmacks is owned by Thermal Exploration (ASE), and the two companies have a merger plan in place.

Prime supports the merger proposal, which offers one share of Western Copper for every five shares of Thermal.

The merged company will have 7.2 million shares outstanding, of which Prime will own 27.5%.

A positive feasibility study on Carmacks estimates the project could be brought on-stream for a capital cost of $62 million.

Diluted minable reserves are estimated at 15.6 million tons grading 1.01% copper, plus 0.015 oz. gold per ton. Based on a recovery rate of 80%, a 1.8-million-ton-per-year operation would produce 29 million lb. annually at a cash cost of US69 cents per lb.

Carmacks is in the permitting phase, and Western Copper expects to receive all permits before the end of the year.