Joint-venture partners Western Copper Holdings (VSE) and Thermal Exploration (ASE) are reviewing plans to consolidate the ownership of their Carmacks copper project in the Yukon.
Western had agreed to issue 3.1 million treasury shares to Thermal for its interest, but the companies decided not to proceed with the deal because of certain tax-related obstacles.
In a separate agreement, Western Copper will acquire 4.6 million shares of Thermal from Queenston Mining (TSE) in return for 600,000 common shares of Western plus warrants to buy an additional 400,000 shares at $2.70 for a period of two years.
Western has also reached an agreement with Teck (TSE) for a private placement of 200,000 shares at $1.60 per share. Proceeds will be used to carry out further work at the property. In return for providing financial services to Western, Teck has been granted options to buy an additional 170,000 shares at $1.85 each for a period of two years.
Feasibility work and permitting are expected to continue throughout the year and, at last report, Carmacks contained a geological resource of 22 million tons grading 1.06% copper and 0.013 oz. gold per ton.
The companies hope to develop the property as an open-pit, heap-leach, solvent extraction-electrowinning operation.
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