Zonia is a near-surface, copper-oxide resource and a brownfields site, located in the Walnut Grove Mining District, Yavapai County, Arizona
World Copper has signed an agreement to merge with Cardero Resource to acquire the latter’s Zonia copper oxide project in central Arizona, US.
With the transaction, the Canadian mining company is enabled to enhance its portfolio of copper mineral projects in US.
Zonia is a near-surface, copper-oxide resource and a brownfields site, located in the Walnut Grove Mining District, Yavapai County, Arizona.
The project comprises 566.85 acres of surface rights acquired from the State of Arizona, with a total area spanning of 4,279.55 acres.
It has 261 mineral claims, of which 96 are patented and 185 unpatented.
The merger is planned to be executed by way of a court-approved plan of arrangement, under the British Columbia Business Corporations Act.
World Copper and Cardero have initially signed a letter agreement for the acquisition of the Zonia Copper Oxide project, in April this year.
In June, the agreement was amended, whereby World Copper agreed to acquire the Zonia copper oxide project by way of business combination with Cardero.
World Copper CEO Nolan Peterson said: “The signing of the definitive agreement with Cardero is another milestone for World Copper and one that will bring significant value to our shareholders.
“Our team sees upside potential at Zonia that has, to this point been unrealized, including a low-cost development and permitting path.
“We will apply the same knowledge and expertise to Zonia, as we have to our Escalones property, and work to advance and de-risk the project going forward.”
Under the terms of the agreement, Subco, a wholly-owned subsidiary of World Copper, will merge with Cardero to become as a single corporation. It will operate as a wholly-owned subsidiary of World Copper.
World Copper shareholders are allowed to collectively hold not more than 60% of the issued and outstanding shares of the company, upon closing.
Also, the former Cardero shareholders are allowed to collectively hold the remaining 40% of the issued and outstanding shares of World Copper.
The completion of the transaction is subject to the satisfaction of customary conditions precedent, including the receipt of all necessary court and regulatory approvals, authorisations and consents.