Explorer Acquires High-Grade Copper-Gold in U.S.

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Copper Quest Exploration Inc. (CQX:CSE; IMIMF:OTCQB; 3MX:FSE) has entered into a letter of intent (LOI) to acquire a privately held copper-gold porphyry project in the Western United States. The project consists of 70 contiguous unpatented federal mining claims and is located within a regionally significant porphyry belt. The company reported that historical chip sampling conducted by the U.S. Bureau of Mines returned results of over 3% copper, 0.8 grams per tonne gold, and 25 grams per tonne silver at surface.

As outlined in the announcement, the acquisition would also include local geological leadership and technical support, which the company states will aid in immediate exploration. Preliminary plans for the site include assay analysis of recent samples, drone-based geophysical surveys, reinterpretation of historical induced polarization data, and preparations for a targeted drill program. The specific location of the project has not yet been disclosed.

Pending due diligence and final agreement, Copper Quest intends to issue 4.25 million common shares in exchange for full ownership of the project. The company also plans to conduct a non-brokered private placement financing of at least US$1 million at a price of US$0.075 per unit, with each unit consisting of one common share and one warrant exercisable at US$0.15 for two years. The financing proceeds will be directed toward exploration at the new site and general working capital.

Copper Sector Faces Structural Shortfalls as Demand Accelerates

According to a June 26 article by Ryan Charles, the International Energy Agency projected a 30% copper supply shortfall by 2035, warning that rising demand from electrification, data centers, and grid modernization would outpace supply. Global refined copper demand was reported at nearly 27 million tonnes in 2024 and was expected to rise to 33 million tonnes by 2035. On the supply side, mined copper output was projected to peak in the late 2020s before declining to less than 19 million tonnes by 2035. Charles noted that ore grades had fallen by 40% since 1991, and the average timeline to bring a copper mine into production had extended to 17 years.

In a June 27 article, Josh Chiat wrote that copper had remained "under the radar" in 2025 despite historically high prices. London Metal Exchange spot prices broke US$10,000 per tonne while U.S. Comex futures approached US$11,000 per tonne. Chiat attributed these price trends to U.S. tariff concerns, a domestic supply shortfall, and increased investor interest. He also cited remarks from CuFe's Mark Hancock, who said, "Every day, there's a new article coming out talking about shortness of supply into the copper market," suggesting the market was characterized by slow supply responses and declining grades.

A report by Richard Mills, published June 29, highlighted further symptoms of market tightness, including backwardation across futures markets, a nearly 80% drop in LME copper inventories, and pressure on Chinese smelters caused by falling treatment charges. According to Mills, refined copper imports into the U.S. in April surpassed 200,000 tonnes, the highest monthly total in over a decade. He also noted that global copper consumption grew by 8.2% year-over-year in the first quarter, driven by renewable energy and electric vehicle production.

Mills cited multiple projections supporting long-term demand strength. A report by Sprott forecast a 555% increase in copper demand from electric vehicles by 2035 and a 557% rise from grid battery storage. The International Energy Agency expected copper usage from solar power to rise by 43%, from wind power by 38%, and from electricity networks by 49% over the same period. Meanwhile, BHP anticipated a 70% rise in global copper demand by 2050, reaching 50 million tonnes annually.

However, structural supply constraints persisted. Mills referenced a report from the International Copper Study Group that showed only a slight increase in copper mine production in 2024 to 22.884 million tonnes. He also cited UBS, which projected that a copper surplus in 2024 would shift to a deficit exceeding 200,000 tonnes in 2025. Additionally, a report by Crux Investor noted that despite a 12% increase in exploration budgets in 2023, only four major discoveries had been made in the previous five years, totaling 4.2 million tonnes.

Strategic Drivers and Development Outlook

Copper Quest's strategic focus continues to center on advancing projects in proven copper belts, particularly those in politically stable jurisdictions. The company's existing asset base includes four copper-focused projects in British Columbia: Stars, Stellar, Rip, and Thane. The planned acquisition in the United States expands that footprint into a region historically known for porphyry deposits and aligns with the company's emphasis on underexplored but geologically favorable ground.

According to the company's corporate presentation, 2025 exploration priorities include drilling at the Stars and Rip projects, ground evaluations at Stellar, and additional target generation work at Thane. Stars, a road-accessible site within the Bulkley Porphyry Belt, previously returned intersections such as 0.466% copper over 195.07 meters. Meanwhile, Rip's geophysical surveys have revealed two porphyry-style anomalies, with initial drilling intersecting mineralized multi-phase intrusions.

The newly announced U.S. project complements these assets by introducing surface-confirmed copper-gold-silver mineralization and logistical advantages through inherited technical infrastructure. With a continued emphasis on securing copper supply in North America, Copper Quest appears positioned to advance multiple assets simultaneously across two jurisdictions.

Ownership and Share Structure

According to the company, approximately 55% of Copper Quest Exploration Inc. is owned by management, directors, advisors, and select strategic investors, with the remaining 45% held by retail shareholders.

The Canadian copper explorer has 53.82 million shares outstanding and 78.5 million shares fully diluted. As of the close on June 30, 2025, Copper Quest's share price was CA$0.09, reflecting a 10% decline on the day. The company's market capitalization stood at approximately CA$4.84 million, based on data from MarketWatch.