Copper Explorer Secures Chile Deal Amid Tariff Surge

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World Copper Ltd. (WCU:TSX.V; WCUFF:OTCQX; 7LY0:FRA) announced it has signed a non-binding letter of intent to acquire a 100% interest in the Cristal project, a copper exploration property located in northern Chile near the Peru–Chile border. The Cristal project consists of nine square kilometers of mineral exploitation concessions and has been the subject of a National Instrument 43-101 technical report, originally filed by New Energy Metals Corp. in 2018.

Under the terms of the letter of intent, World Copper, or a nominated affiliate, would issue 500,000 common shares to the project vendor upon signing a definitive agreement and make aggregate cash payments of US$350,000. These payments are structured in installments, with US$50,000 due 30 days before the start of drilling. World Copper would be responsible for all exploration costs and activities during the option period and is required to keep the property in good standing.

Should the option be exercised, the vendor would receive a 2% net smelter returns (NSR) royalty. World Copper retains the right to purchase half of this royalty for US$2 million. The project is also subject to a separate 1% NSR royalty payable to Condor Resources Inc., which can be repurchased in full for US$1 million.

In the same announcement, World Copper confirmed it has terminated its option to acquire the Escalones project, also located in Chile. The option was originally held by a wholly owned subsidiary of the company.

Copper Sector Adjusts to Record U.S. Prices and Tariff Disruption

Copper markets faced major shifts in July following the announcement of a 50% tariff on copper imports by U.S. President Donald Trump. According to The Guardian on July 9, copper futures in the U.S. surged over 10% to an all-time high of US$5.682 per pound after Trump stated, "Today we're doing copper," signaling the beginning of a new tariff regime. The price remained elevated, with Forbes reporting that intraday spikes reached US$5.89 per pound, marking the largest one-day increase since 1989.

These developments occurred amid heightened uncertainty. As reported by Yahoo! Finance on July 9, Eric Saderholm, co-founder of a U.S.-based mining company, described the market situation as "a crapshoot," attributing the volatility to the unclear scope and timing of the tariffs. The same article cited LPL Financial strategist Adam Turnquist, who noted that U.S. copper prices were trading at a 25% premium to those on the London Metal Exchange, driven by importers rushing to stockpile metal before the levies take effect.

Ahead of the Herd on July 13 emphasized the structural challenges behind the U.S. policy shift. The article noted that while the U.S. imported about one million tonnes of refined copper in 2024, it had only two operational smelters. This capacity shortfall left the country unable to significantly boost domestic refining in the near term. Jefferies analysts were quoted stating, "The U.S. does not have nearly enough mine/smelter/refinery capacity to be self-sufficient in copper," and predicted that tariffs would lead to "continued significant price premiums in the U.S. relative to other regions."

On July 13, Excelsior Prosperity highlighted how the copper price had been technically trending higher well before the tariff news but acknowledged that the policy shift provided the final momentum needed to break above the US$5 threshold. The site explained that the surge was the third breakout above US$5 and likely signaled broader acceptance of higher copper pricing in the market.

CNN reported on July 17 that copper prices in the United States surged to a record US$5.69 per pound following President Donald Trump's announcement of a 50% tariff on copper imports, set to begin August 1. The price spike marked the largest single-day increase since records began in 1968, driven by uncertainty and concern over future supply. Ole Hansen of Saxo Bank described the proposed tariff as a "massive tax on consumers of copper," noting that over 50% of U.S. copper demand was met through imports, largely from Chile, Peru, and Canada.

Rob Haworth of U.S. Bank emphasized copper's essential role in everyday life, stating, "You probably don't go a day where you haven't used something that has copper in it." According to S&P Global Market Intelligence, the average timeline from copper discovery to production in the U.S. is 32 years, which complicates any immediate efforts to increase domestic output. Oxford Economics economist Grace Zwemmer said the tariff would increase costs for manufacturers across sectors such as construction, electronics, and automotive. ING strategist Ewa Manthey added that while a short-term stockpile of imported copper might provide a temporary buffer, "higher copper prices also risk higher inflation, raising costs for U.S. manufacturers without a domestic alternative available."

Strategic Positioning and Project Focus

World Copper continues to emphasize project development in the Americas, with a strong focus on copper oxide systems. According to its July 2025 investor presentation, the company is advancing its flagship Zonia project in Arizona, which sits on private land and benefits from favorable permitting timelines and infrastructure access. Zonia is considered a brownfield project and utilizes a conventional open-pit and heap leach model for copper cathode production, which does not require smelting and produces fewer emissions.

The company's operational approach focuses on assets with simplified permitting paths and near-surface mineralization. This aligns with broader market trends and policy movements toward domestic mineral supply security. The presentation notes that the United States consumed 3.5 million tonnes of copper in 2023 while producing only 2.1 million tonnes, resulting in a significant domestic supply deficit.

In its development timeline, World Copper indicated plans for infill drilling and metallurgical testing at Zonia throughout 2025, alongside efforts to secure state and federal permits. The company's acquisition interest in the Cristal project adds another copper porphyry target to its portfolio, aligning with its strategy to secure and advance high-potential copper properties in mining-friendly jurisdictions.

Ownership and Share Structure

Strategic entities hold 19.58% of World Copper, including Wealth Minerals Ltd. (WML:TSX.V; WMLLF:OTCQB) at 8.18%, according to Refinitiv.

About 16.66% is owned by management and insiders, including Robert Kopple with 14.31%. Institutions hold 1.66% The rest is retail.

As for share structure, World Copper Ltd. had 250,519,067 shares issued and a market capitalization of US$15.03 million. Its 52-week trading range was between US$0.035 and US$0.145 per share, according to the TSX Venture Exchange data as of July 18, 2025.