Copper Explorer Merges for High-Grade Yukon Breakthrough

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Granite Creek Copper Ltd. (GCX:TSX.V; GCXXF:OTCQB) and Cascadia Minerals Ltd. (TSXV: CAM) have announced a definitive agreement under which Cascadia will acquire all issued and outstanding shares of Granite Creek. The transaction, executed through a share exchange plan of arrangement, values Granite Creek shares at CA$0.04 each, based on Cascadia’s closing price on June 6, 2025. This represents a 48% premium over Granite Creek’s five-day volume-weighted average price. Granite Creek shareholders will receive 0.25 Cascadia shares per Granite Creek share, giving them 41% ownership of the combined entity, excluding shares from a concurrent financing.

The transaction combines Granite Creek’s Carmacks Project with Cascadia’s portfolio in the Stikine Terrane of Yukon. The Carmacks Project features a Measured and Indicated resource of 651 million pounds of copper and 302 thousand ounces of gold, within 36.3 million tonnes grading 0.81% copper, 0.26 g/t gold, and 3.23 g/t silver. A 2023 Preliminary Economic Assessment (PEA) estimated a post-tax net present value (NPV) of CA$230.5 million and a 29% internal rate of return (IRR), assuming a copper price of US$3.75 per pound and a gold price of US$1,800 per ounce. The project is road-accessible, located 34 kilometers from the town of Carmacks, and close to grid power.

Cascadia President and CEO Graham Downs said in the news release, “This transaction is a great opportunity for both Cascadia and Granite Creek shareholders… Our team is confident in the exploration potential around the main deposits and throughout the property.” Granite Creek President and CEO Timothy Johnston called the merger “a logical next step for both companies” and expressed confidence in Cascadia’s team to advance the Carmacks Project.

The companies plan to close the transaction by July 2025, subject to customary conditions including regulatory and shareholder approvals. Granite Creek directors, representing about 6% of shares, have entered into voting support agreements. The board of Granite Creek has unanimously recommended the transaction, based on a fairness opinion from Evans & Evans Inc.

A concurrent private placement is underway by Cascadia to raise up to CA$2.25 million. Subscription receipts and units are priced at CA$0.14 each and include common share purchase warrants exercisable at CA$0.24. The proceeds will support transaction-related expenses and exploration at Carmacks. Additionally, Cascadia has extended a non-interest-bearing bridge loan of CA$375,000 to Granite Creek and will settle up to CA$521,000 of Granite Creek’s debt through share issuances.

Following completion, Granite Creek shares will be delisted, and the company will apply to cease being a reporting issuer. Timothy Johnston is expected to join Cascadia’s board of directors.

Copper Sector Spotlight: Global Tightness Meets Rising Material Demands

Copper remained at the forefront of industrial and technological conversations in early June, as data pointed to mounting pressures on both supply and demand. According to a June 4 report by IndexBox, the European Union’s refined copper market was projected to reach a volume of 2.5 million tons and a value of US$25.2 billion by 2035. EU consumption hit 2.3 million tons, marking a 4.9% year-over-year increase. Italy, Spain, and Germany collectively accounted for nearly half of that volume, with Italy leading in value at US$4.7 billion. Among the key consumers, Sweden stood out with the highest market growth rate, recording a compound annual growth rate of 15.4%.

Meanwhile, signs of tightening supply emerged in the trading data. Finimize reported on June 6 that spot copper prices on the London Metal Exchange (LME) were trading at a US$75 premium over futures contracts. This marked a shift known as backwardation, typically indicating short-term supply stress. LME copper stocks have declined by half since February, reaching just 132,400 tons. The report cautioned that “copper’s bright future dims,” citing mine disruptions and increased flows toward US markets.

Compounding the issue is the growing demand for ultra-pure copper in the semiconductor sector. A June 9 article by Kirsteen Mackay for Value The Markets outlined how ongoing advances in chip design are pushing copper to its physical limits. With wires now only atoms thick, the copper used must deliver consistent conductivity, thermal performance, and durability. While alternatives such as cobalt and ruthenium are under evaluation, copper remains the standard material for now.

Mackay underscored a critical challenge: not all copper is refined to the purity required for advanced semiconductors. “Even when copper supply grows, not all of it meets the semiconductor industry’s standards,” she noted. This quality gap, if unaddressed, could complicate fabrication timelines and raise costs, adding another layer of pressure to an already constrained supply chain.

Copper-Gold Synergies: What Comes Next for the New Company

The newly combined entity will be positioned as a leading copper-gold explorer in Yukon’s Minto Copper Belt. The Carmacks Project provides the cornerstone, with Granite Creek’s investor presentation highlighting 850 million pounds of copper equivalent (CuEq) in Measured and Indicated resources across oxide and sulfide domains. The company estimated average operating costs of US$1.76 per pound CuEq and all-in sustaining costs of US$2.57 per pound CuEq over a nine-year mine life.

The 2023 PEA outlined plans for a 7,000 tonnes-per-day mill with potential for expanded mine life through near-pit and district-scale targets. According to metallurgical test results published in January 2024, recovery of copper from oxide ore could increase from 39.8% to 88%. This was well above the PEA target of 77%, while sulfide recovery stood at 93.7%. This improvement could add over CA$180 million in value, based on recovery sensitivity analyses.

Near-term catalysts include a fall 2025 drill program to test extensions near previous high-grade intercepts such as 105.52 meters of 0.96% copper in hole CRM21-011. Further exploration is planned at the Carmacks North area and within 10 kilometers of the proposed mill site. Additionally, the new company inherits Cascadia’s Catch Property, where outcrop samples returned up to 1,065 g/t gold and drill results included 116.6 meters of 0.31% copper with 0.30 g/t gold.

With roughly US$2.5 million in combined cash post-transaction, the company has indicated its intention to advance both brownfield expansion at Carmacks and greenfield exploration at Catch and other targets within the Stikine Terrane. The consolidated land position and proximity to the past-producing Minto Mine could provide infrastructure advantages, while electrification of the mining fleet is also being explored for cost efficiency and environmental benefits.

As copper demand continues to rise, driven by electrification trends and constrained global supply, the merged company appears well-placed to develop a robust Yukon-based asset portfolio focused on long-term copper and gold growth.

Ownership and Share Structure

According to Refinitiv, insiders own 6.38% of Granite Creek Copper, including the CEO Johnson with 2.55%. The next top two, both directors, are Robert Sennott with 2.11% and Michael Rowley with 1.37%.

The company does not have any institutional investors. Retail investors own the remaining 93.71%.

Granite Creek has 198.27 million shares outstanding and 185.79 million free-float traded shares. The company's market cap is CA$3.97 million, and it trades in a 52-week range of CA$0.02 to CA$0.06 per share.