Copper Fox Metals- 2022 buyout I have concluded there is a likely sale of Schaft Creek in early 2022. Transaction news could be announced by Q1, but likely by Q2.
Copper Fox is currently awaiting 2021 results to reduce operating costs, improve construction timeline and increase metal recoveries. These objectives if positive would significantly increase our NAV (Net Asset Value). A metric insiders will use to determine our sale price.
If all objectives are completed successfully, we are adding hundreds of millions to our purchase price, hence the wait to maximize buyout price.
While we await these results to increase the NPV- insiders are also looking a Teck's budget plans for the project. Do they plan to continue drilling and conduct further metallurgical studies for the PFS report? Maybe, but insiders prefer an exit today rather wait another two years. The other big question- Does Teck want to take Copper Fox further along the value chain and continue to advance Schaft Creek at their expense or find a new partner with capital to help out? This is very likely the scenario in that they want a partner with mine expertise.
Many questions but should be answered very soon. M&A will continue to heat up for promising projects in North America. Majors are looking, commodities are soaring. Demand will increase substantially. Copper Fox is a prime takeover candidate.