It has been a disappointing year for copper miners as prices have failed to take off as anticipated. The outlook for copper had been rather bullish at the end of last year as investors anticipated a supply deficit by as early as 2017.
However, since the start of this year, prices have struggled amid concerns over the state of the Chinese economy. Prices are currently hovering around $2.20 per pound, well below the highs formed earlier in the year. The good news for copper miners though is that the Chinese economy is showing signs of a recovery. The pullback in the U.S. dollar is also helping copper. Also a recovery in oil prices has had a positive impact on copper prices.
Copper Lake Resources Ltd. (TSX-Venture:CPL) is a Toronto-based company focusing on advancing two significant properties located in Ontario. The Company’s primary property, the Marshall Lake VMS copper, zinc, silver and gold property is an advanced exploration stage property located 120 km north of Geraldton, Ontario via good all-weather gravel road from the Trans-Canada Highway and just 22 km north of the main CNR rail line.
Copper Lake Resources today announced that it has now closed the transaction to acquire the 31.25% interest in the Marshall Lake property held by Marshall Lake Mining Limited, a privately held U.K.-based company. The agreement to acquire the interest was announced on May 5. The transaction was approved by shareholders on July 26, and received approval from the TSX Venture Exchange on September 22. This acquisition now gives Copper Lake a 68.75% interest in the Marshall Lake property.
In consideration, the Company will issue 34,422,938 common shares and a principal amount of $350,000 of 12% five-year unsecured subordinated convertible debentures to Marshall Lake Mining Limited, subject to customary closing adjustments.
Terry MacDonald, Interim CEO at Copper Lake Resources, said that the company is very pleased to have reached this significant milestone. MacDonald said that his Company has gone through a significant restructuring over the last year, and the completion of this acquisition is the culmination of that process. He added that the addition of Dr. Jeffery Malaihollo and Paul Mcgroary will strengthen the Board and add to both of their geological expertise and the company’s ability to access European and Asian markets.
Copper Lake also announced that its Board of Directors granted 1,000,000 options pursuant to the company’s Stock Option plan.
Even with the tough copper conditions, shares of CPL have been on the move higher in 2016 along with most other junior miners with shares currently in the top range of their 52-week range.
