Infinitum Copper Corp. (INFI:TSX) has successfully closed its transaction to transition the Hot Breccia project in Arizona to a joint venture with Prismo Metals Inc. (PRIZ;CSE)
Infinitum has received CA$350,000 cash and 500,000 shares from Prismo. Prismo will now complete CA$5.5 million of exploration work at the site over the next five years, after which Prismo and Infinitum will have a 75% to 25% JV, respectively.
Infinitum said the move allows it to put renewed focus on its flagship project, La Adelita, in Mexico.
"The transaction with Prismo allows us to focus our resources on La Adelita while still retaining considerable upside exposure to Hot Breccia for our shareholders through our 25% joint venture stake," Infinitum Chief Executive Officer Matt Hudson said.
Based on recent charts, technical analyst Clive Maund of CliveMaund.com rated the stock a Speculative Buy.
"Infinitum’s chart looks exceptionally bullish, in good part because of the extraordinarily bullish volume pattern," Maund wrote. "It is not known what is going on behind the scenes, but we can safely assume from this chart that whatever it is, is positive."
As the company positions itself for increasing demand for copper in the new green economy, Hudson took over leadership of Infinitum just this month.
"Infinitum’s chart looks exceptionally bullish, in good part because of the extraordinarily bullish volume pattern," Maund wrote.
Maund said the six-month chart for the company shows that a low Cup and Handle base has formed in the chart. But even more important is the "persistent and heavy volume" of the trading, he said, which "implies that some people ‘in the know’ are positioning themselves, and it might even be another larger mining company getting ready to buy it out."
The price could stay in the same area for a while longer, the analyst said.
"However, the volume indications are so powerfully bullish that it could take off higher sooner rather than later, and it could even do so immediately," Maund wrote.
The Catalysts: A Tale of 2 Projects
While the results from La Adelita have been "very positive" and "exceptional" in one hole, according to one newsletter editor, Hudson has said he doesn’t want to distance the company completely from Hot Breccia’s potential.
"We look forward to collaborating with (Prismo) in the years ahead," he said.
The 1,420-hectare Hot Breccia property is 5 kilometers from Freeport-McMoRan Inc.'s (FCX:NYSE) Christmas mine and 2 kilometers from a smelter complex in Arizona’s copper belt, the company said.
Using the Christmas mine as an analog, an underground high-grade copper skarn could be present at the site with 50 to 300 million tons grading 1.5% to 3% copper with strong zinc and copper totals, Infinitum said.
The next steps at the site will include working with the local community, applying for permits, fieldwork including sampling and geophysics, and drilling.
The company is working toward having a resource estimate for La Adelita, which is located in the Alamos Mining District, near the Alamo Dorado Mine in Southern Sonora, Mexico.
"The drill bit encountered 24.35 meters (20.60 meters true width) of 1.91% copper (Cu), 2 [grams per tonne gold (g/t Au)], and just under 41 g/t silver (Ag)" at La Adelita, Caesars Report newsletter editor Thibaut Lepouttre wrote. "This represents an official copper-equivalent grade of 3.71% . . . Needless to say, encountering that type of grade over an interval in excess of 20 meters on a true width basis is excellent."
The discovery of high levels of magnetite among the high-grade copper, gold, and silver at the site should aid the company in exploring. A detailed magnetometer survey should help locate more mineralization, the company said.
Demand for Mineral to Double by 2035
Electric vehicles (EVs) use at least three times as much copper as their fossil-fuel counterparts because of the metal’s electrical conductivity. The infrastructure for charging those vehicles also will require plenty of the red metal for solar cells and batteries.
"One of the most underappreciated critical minerals is also one of the most familiar and most fundamental — copper," S&P Global wrote in a recent report, The Future of Copper.
"While a variety of metals and rare earth elements have received a great deal of attention by governments, media, think tanks, and universities, one of the most underappreciated critical minerals is also one of the most familiar and most fundamental — copper," S&P Global wrote in a recent report, The Future of Copper. "Deeper electrification requires wires, and wires are primarily made from copper."
Streetwise Ownership Overview*According to the report, copper, "the metal of electrification," is essential to all energy plans. Demand is expected to double from about 25 million metric tons (Mmt) today to about 50 Mmt by 2035.
The amount of copper that will be required by 2050 will be more than all the copper consumed by the world between 1900 and 2021, it said.
Ownership and Share Structure
About 16% of the company is owned by management and insiders. About 29% belongs to institutions and strategic investors. Minaurum Gold Inc. owns the most at 12%, with 6.11 million shares. The rest is retail.
Infinitum has 49.5 million shares outstanding, 33.2 million free-floating, according to the company. Its market cap is CA$3.91 million, and it trades in a 52-week range of CA$0.52 and $0.04.
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