WRN - Mitsubishi Materials to buy 5% stake in Western Copper

2023-03-24 07:17:51 ET

Western Copper and Gold ( NYSE: WRN ) said Friday that Mitsubishi Materials ( OTCPK:MIMTF ) agreed to purchase 5% of its issued and outstanding shares at C$2.63 each to further advance the copper-gold Casino Project in the Yukon.

Mitsubishi Materials ( OTCPK:MIMTF ) will have the right to appoint at least one Western Copper ( WRN ) director and one member to a Casino Project Technical and Sustainability Committee.

Assuming shareholder Rio Tinto elects to exercise its participation right in full, then Western Copper ( WRN ) expects to issue nearly 8.1M shares to Mitsubishi Materials for C$21.3M in aggregate gross proceeds.

"Exploration companies are more speculative than miners and can turbocharge returns during significant copper and gold rallies," Andrew Hecht writes in an analysis published earlier this year on Seeking Alpha .

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