Alpha Copper Corp. (OTC:ALCUF) Stock Gains Momentum: Here is Why
The mineral exploration space attracts considerable attention from investors, and for good reason too, given its importance to the global economy. One of the companies from the sector to have come into the news cycle yesterday was Alpha Copper Corp. (OTC:ALCUF). It is a resource sector enterprise firm that seeks to create value for its shareholders through the acquisition of assets, mineral exploration, and technical development.
The company announced on Monday that it had entered into a definitive agreement for the 100% beneficial and undivided legal interest in the Okeover Copper Project from Northwest Copper Corp. The project in question spans across 12 mineral claims, encompassing an area of as much as 4613 hectares. It is located in British Columbia.
As per the terms of the agreement, Alpha Copper would issue its common shares to the seller with a valuation of $500,000. The shares would be issued at a deemed price per share that would be equivalent to the current market price, which would be calculated in line with the terms of the agreement. It was also noted by Alpha Cooper in its news release that 50% of those shares would be subjected to a lockup period lasting 12 months.
The seller also agreed to not transfer, sell, or dispose of the shares until the end of the lock-up period. However, the company had the right to first refuse the shares if the seller decided to sell them in the future. Additionally, Northwest Copper had also been granted smelter royalty returns to the tune of 2% net on the project. However, that would be subject to the buyback option of paying half of that royalty to Alpha Copper for the total sum of $1,000,000.
On May 18, the company hit the headlines after it announced the results and analysis of a magnetic 3D geophysical study on its Star Project, located in the Northwestern zone of British Columbia. The project is situated around 50 kilometers to the north-west of the community at Telegraph Creek, on the traditional territory belonging to the Tahltan First Nation.
The project is situated at Stikine Arch, which is an area of high prospect. It could be a good idea for investors to consider taking a look at some of the highlights from the study. Seven target areas had been discovered with copper mineralization at the surface, which is underlain by magnetic irregularities. Additionally, the magnetic lows were also related to the altered faults that had been brought about hydrothermally. The lows were also an expression of the porphyry system.
Last but not least, the oval-shaped magnetic anomaly at the target property could be associated with alkalic porphyry-style potassic alteration. That recorded a width of 400 meters and a depth of 150 meters but had not been drill tested. The Chief Executive Officer of the company, Daryll Jones, had spoken about the development at the time. He noted that the company would be able to use the magnetic data to complement the geological model.
