Western Copper, Thermal to merge

An amalgamation of Western Copper Holdings (TSE) and Thermal Exploration (ASE) is in the works.

The merger is intended to facilitate development and financing of the jointly owned Carmacks copper project in the Yukon.

Directors of the two companies are proposing that Thermal shareholders receive one share of Western Copper for every five shares held. Thermal shareholders will also receive a dividend of shares in a new company which will hold Thermal’s other assets.

Upon completion of the deal, Western Copper will have 7 million shares outstanding. Western owns 5.8 million shares of Thermal (about 36%), and its shares in Thermal’s dividended-out new company will be cancelled after the merger.

All permits for the Carmacks project are expected to be received in the third quarter. The project hosts a minable reserve of 15.6 million tons grading 1.01% copper and 0.015 oz. gold per ton.

The capital cost of a 1.8-million-ton-per-year, open-pit, leaching operation is projected at $62 million, including $5 million in working capital. Yearly output will be 29 million lb. at a cash cost of US69 cents.

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