Green Energy Transition Drives Copper Mining M&A

The International Energy Agency (IEA) estimates that governments’ Net Zero plans to minimize greenhouse gas emissions might increase copper use by 40% by 2040. As companies seek high-quality deposits and production capacity, copper mining mergers and acquisitions (M&A) have increased. Teck Resources Limited (TSX:TECK.B)(NYSE:TECK) will spin off its steelmaking coal division to shareholders, resulting in two distinct firms. Hudbay Minerals (TSX:HBM), a Canadian miner with interests in Canada, Peru, and the US, will buy Copper Mountain Mining. The price paid marks a 23% premium for stockholders, with the deal valued at $439 million. The transaction demonstrates that even struggling single-asset copper producers are generating interest and premiums as demand for green metals rises throughout the energy revolution. Freeport-McMoRan Inc. (NYSE:FCX) CEO Richard Adkerson expects further deals. He stated copper demand is high in the short term and they are optimistic about the long term. Meanwhile, New Energy Metals Corp. (TSXV:ENRG) (OTC:NEMCF) has the option to purchase a 100% interest in the Troitsa copper project, which spans around 7,000 hectares in British Columbia’s Omineca mining division. Taseko Mines Limited (TSX:TKO)(NYSE American:TGB) completed its acquisition of an additional 12.5% interest in the Gibraltar Mine from Sojitz Corporation.

New Energy Metals Corp. (TSXV:ENRG) (OTC:NEMCF) is a Canadian-based resource company has the option to acquire a 100% stake in the Troitsa Copper Project, approximately 7,000 hectare land parcel in British Columbia with substantial grades from historical results, and the Roslyn Lithium Project, which spans 5,100 hectares and is located 20 kilometers southeast of the Georgia Lake Pegmatite Field and 35 kilometers southeast of where Rock Tech Lithium recently released a PEA supporting an indicated mineral resource of 10.6 Mt (million tonnes) grading 0.88% Li2O and an inferred mineral resource of 4.2 Mt grading 1.0% Li2O. The company just underwent a leadership restructuring to bolster its team following the acquisition of two promising critical metals projects. 

On April 3, New Energy Metals announced the appointment of Edward Nunn as technical advisor. Nunn has spent 50 years in the mining sector, principally in project engineering and management for mine operating firms globally. 

A month prior, New Energy Metals appointed Keenan Hohol to its Board of Directors. Mr. Hohol is an international advisor with over 20 years of experience in mergers and acquisitions and corporate transactions, corporate governance and corporate development, legal and regulatory compliance, corporate social responsibility, risk management, business ethics and anti-corruption, and litigation management. Mr. Hohol’s previous executive roles include General Counsel, Global Exploration, BHP Billiton; Global Head of Legal, Western Coal and interim General Counsel at Walter Energy; Vice-President, Legal and General Counsel, for Silver Standard Resources; and General Counsel, for Pan American Silver.

On March 1, New Energy Metals announced that it has closed the acquisition of the Roslyn Lithium Project , which is located 50 kilometers northeast of Nipigon in Northwestern Ontario. The Roslyn property is made up of 12 claims (254 cells) totaling approximately 5,100 hectares. 

In February, New Energy Metals announced that, in response to its news release dated September 7, 2022, the TSX Venture Exchange has approved the Troitsa Copper Project option agreement. The Company may acquire a 100% interest in the Troitsa Copper Project  by making $220,000 in cash payments and issuing 1,200,000 common shares over a three-year period, as well as completing $5,000 in staking or similar acquisition within the Area of Interest, as defined in the Agreement, within 12 months of the Agreement’s execution date. In addition, if the option is exercised, the Company will issue 600,000 common shares based on the completion of specific objectives. Following the seventh anniversary of the execution date, the Agreement also includes certain advance royalty payment obligations.

For more information about New Energy Metals Corp. (TSXV:ENRG) (OTC:NEMCF), click here.

Miners Are Progressing on Copper Projects

On April 6, Teck Resources Limited (TSX:TECK.B) (NYSE:TECK) and Agnico Eagle Mines Limited announced that it has closed the previously announced joint venture deal to advance the San Nicolás copper-zinc development project. In a joint venture shareholders agreement, Teck and Agnico Eagle agreed that Agnico Eagle would pay $580 million for a 50% stake in Minas de San Nicolás, S.A.P.I. de C.V. (MSN), to be paid as MSN incurs research and development costs. Agnico Eagle is regarded to be a 50% shareholder in MSN as of the closing date, regardless of the number of shares issued to Agnico Eagle or its subsidiary.

Hudbay Minerals (TSX:HBM)(NYSE:HBM) and Copper Mountain Mining Corporation announced on April 13 the signing of a definitive agreement under which Hudbay will acquire all of Copper Mountain’s issued and outstanding common shares under a court-approved plan of arrangement. The transaction will create a leading Americas-focused copper mining firm well-positioned to produce sustainable cash flows from three long-life mines, as well as compelling organic growth from a world-class pipeline of copper expansion and development projects. The merged portfolio’s assets are all located in mining-friendly nations such as Canada, Peru, and the United States. Based on 2023 copper output estimates, the combined business is Canada’s third largest copper producer.

Taseko Mines Limited (TSX:TKO)(NYSE American:TGB) announced on March 30 the results of recent technical work and updated economics for its 100%-owned Florence Copper Project, which is located in Arizona, United States of America. The company has posted a new technical report on SEDAR. The document was released to the public on March 30, 2023 and is titled “NI 43-101 Technical Report – Florence Copper Project, Pinal County, Arizona”. The technical report was prepared in line with NI 43-101 and includes revised capital and operational costs for the commercial manufacturing facility, as well as revisions to the operating models based on the findings of the Production Test Facility (PTF).

Freeport-McMoRan Inc. (NYSE:FCX) announced on February 15 that PT Freeport Indonesia (PT-FI) has been given the Copper Mark. With this award, FCX has earned the Copper Mark at all 12 of its sites around the world that can produce copper. FCX also said that its Climax and Henderson primary molybdenum mines have been given the Molybdenum Mark. This makes FCX the first primary molybdenum miner to get this honor.

In February, New Energy Metals announced In the completion of the second and final tranche of its non-brokered private placement of 2,766,000 units at a price of $0.25 per unit for gross proceeds of $691,500.The Company raised a total of $1,366,500 through the issue of 5,466,000 units in the first and second tranches of the Offering.

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6) This document contains forward-looking information and forward-looking statements, within the meaning of applicable Canadian securities legislation, (collectively, “forward-looking statements”), which reflect management’s expectations regarding New Energy Metals Corp.’s future growth, future business plans and opportunities, expected activities, and other statements about future events, results or performance. Wherever possible, words such as “predicts”, “projects”, “targets”, “plans”, “expects”, “does not expect”, “budget”, “scheduled”, “estimates”, “forecasts”, “anticipate” or “does not anticipate”, “believe”, “intend” and similar expressions or statements that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved, or the negative or grammatical variation thereof or other variations thereof, or comparable terminology have been used to identify forward-looking statements. These forward-looking statements include, among other things, statements relating to: (a) revenue generating potential with respect to New Energy Metals Corp.’s industry; (b) market opportunity; (c) New Energy Metals Corp.’s business plans and strategies; (d) services that New Energy Metals Corp. intends to offer; (e) New Energy Metals Corp.’s milestone projections and targets; (f) New Energy Metals Corp.’s expectations regarding receipt of approval for regulatory applications; (g) New Energy Metals Corp.’s intentions to expand into other jurisdictions including the timeline expectations relating to those expansion plans; and (h) New Energy Metals Corp.’s expectations with regarding its ability to deliver shareholder value. Forward-looking statements are not a guarantee of future performance and are based upon a number of estimates and assumptions of management in light of management’s experience and perception of trends, current conditions and expected developments, as well as other factors that management believes to be relevant and reasonable in the circumstances, as of the date of this document including, without limitation, assumptions about: (a) the ability to raise any necessary additional capital on reasonable terms to execute New Energy Metals Corp.’s business plan; (b) that general business and economic conditions will not change in a material adverse manner; (c) New Energy Metals Corp.’s ability to procure equipment and operating supplies in sufficient quantities and on a timely basis; (d) New Energy Metals Corp.’s ability to enter into contractual arrangements with additional Pharmacies; (e) the accuracy of budgeted costs and expenditures; (f) New Energy Metals Corp.’s ability to attract and retain skilled personnel; (g) political and regulatory stability; (h) the receipt of governmental, regulatory and third-party approvals, licenses and permits on favorable terms; (i) changes in applicable legislation; (j) stability in financial and capital markets; and (k) expectations regarding the level of disruption to as a result of CV-19. Such forward-looking information involves a variety of known and unknown risks, uncertainties and other factors which may cause the actual plans, intentions, activities, results, performance or achievements of New Energy Metals Corp. to be materially different from any future plans, intentions, activities, results, performance or achievements expressed or implied by such forward-looking statements. Such risks include, without limitation: (a) New Energy Metals Corp.’s operations could be adversely affected by possible future government legislation, policies and controls or by changes in applicable laws and regulations; (b) public health crises such as CV-19 may adversely impact New Energy Metals Corp.’s business; (c) the volatility of global capital markets; (d) political instability and changes to the regulations governing New Energy Metals Corp.’s business operations (e) New Energy Metals Corp. may be unable to implement its growth strategy; and (f) increased competition.

Except as required by law, New Energy Metals Corp. undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future event or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events. Neither does New Energy Metals Corp. nor any of its representatives make any representation or warranty, express or implied, as to the accuracy, sufficiency or completeness of the information in this document. Neither New Energy Metals Corp. nor any of its representatives shall have any liability whatsoever, under contract, tort, trust or otherwise, to you or any person resulting from the use of the information in this document by you or any of your representatives or for omissions from the information in this document.

7) Any graphs, tables or other information demonstrating the historical performance or current or historical attributes of New Energy Metals Corp. or any other entity contained in this document are intended only to illustrate historical performance or current or historical attributes of New Energy Metals Corp. or such entities and are not necessarily indicative of future performance of New Energy Metals Corp. or such entities.

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