World Copper/WCU

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World Copper Ltd. (WCU:TSX.V; WCUFF:OTCQX; 7LY0:FRA) announced that it has secured an interim order from the Supreme Court of British Columbia related to its arrangement with Plata Latina Minerals Corp. (PLA:TSX.V) to sell the Zonia copper project, according to a news release.

The sale will be finalized through a court-sanctioned plan of arrangement under the Business Corporations Act (British Columbia). This interim order allows for a special meeting of World Copper shareholders to be convened, where they will consider and vote on a special resolution to approve the arrangement. This meeting is set to take place at World Copper's offices at 1570-200 Burrard St., Vancouver, B.C., Canada, on October 16, 2025, at 9:30 a.m. (Vancouver time).

Key insiders of World Copper and certain other shareholders, collectively holding about 29% of the outstanding World Copper shares, have signed voting and support agreements in favor of the arrangement, the company noted in the release on September 18.

According to President and Chief Executive Officer Gordon Neal, the implied value of the deal is US$0.85 for World Copper shares.

"The sale of Zonia to Plata Latina will provide significant value to World Copper shareholders," Neal said when the agreement was announced in July. "The Plata Latina team has a track record of creating value for shareholders by developing, operating, and ultimately vending copper and gold mines and assets to major resource industry players. World Copper shareholders will receive a significant share position in Plata Latina while maintaining their existing shares in World Copper."

Neal continued, "The new reconstituted World Copper will be a clean, debt-free and capitalized copper exploration company with a new Chilean asset. This is a meaningful win for World Copper shareholders in an accelerating global copper market.”

Letitia Wong, president and CEO of Plata Latina, said at the time that the acquisition of Zonia is an important and significant step for the company and "positions us well as the U.S. focuses on domestic demand for critical minerals. With Zonia located on private and patented lands, the permitting process is expected to be more efficient and streamlined, enhancing project development certainty. Under the leadership of our highly experienced project team — recognized for its success in advancing copper projects in Arizona — we look forward to moving Zonia toward construction in the near to medium term."

Details of Arrangement

Through the arrangement, World Copper will transfer ownership of the Zonia project to Plata Latina. Shareholders of World Copper will retain their existing shares in World Copper and will also receive about 0.3744 shares of Plata Latina for every World Copper share they own. This will result in World Copper and its shareholders collectively holding a 31.3% stake in Plata Latina, which plans to rebrand as Edge Copper Corp. once the arrangement is finalized.

In addition to the shares distributed to World Copper shareholders, Plata Latina will provide CA$10.5 million in cash and issue 15 million shares to World Copper, with the total transaction valued at around CA$22 million. Plata Latina has secured CA$17 million in concurrent financing to cover the cash portion of the arrangement and to fund the exploration and development of the Zonia project. This includes activities such as drilling, metallurgical testing, feasibility studies, permitting, and general corporate purposes.

Following the completion of the arrangement and after settling debts owed by the company and its subsidiaries, World Copper is anticipated to be free of debt, with at least CA$500,000 in cash and ownership of five million Plata Latina shares.

World Copper shareholders are expected to benefit from this arrangement by holding stakes in both Plata Latina and World Copper after the deal closes. They will also gain from the expertise of Plata Latina's management team, known for their successful track record in Arizona and their ability to enhance resource value.

As a result of this arrangement, Plata Latina aims to transform into a development-oriented copper company, ready to advance the fully owned Zonia project in Arizona.

'We Had Many Offers'

Assuming the final court order approving the arrangement is obtained, along with the necessary approvals from World Copper's shareholders at the meeting, approvals from Plata Latina shareholders at their special meeting, required regulatory consents, and the fulfillment of all other conditions outlined in the arrangement agreement, the arrangement is expected to be finalized in October 2025.

"In a market where a copper deficit has been creating rising copper prices, the Zonia project was a primary asset to be put back into production in the United States," Neal said. "We had many offers for strategic partnerships to develop the Zonia project, but we believe that the Plata Latina team will bring the best value to World Copper shareholders. World Copper shareholders will benefit from holding both Plata Latina and World Copper shares upon completion of the arrangement. I want to thank shareholders for their patience as we navigate through this process and work on the next steps to deliver value."

World Copper remains committed to advancing project development across the Americas, with a particular emphasis on copper oxide systems.

It said that it is well positioned with its continued interest in its flagship Cristal copper project in Chile and a strengthened financial position following the Zonia transaction.

ATM Program Concludes

World Copper also announced the conclusion of its at-the-market equity program (ATM program) announced in 2024. The program had allowed World Copper to issue and sell common shares from treasury with a total gross sales amount of up to CA$25 million through BMO Capital Markets acting as the sole agent.

This program was initially set up to raise funds for advancing the Zonia project and for general working capital purposes. The decision to end the ATM program was made in anticipation of the sale of the Zonia project to Plata Latina as part of the arrangement. By the termination date, the ATM program had generated total gross proceeds of approximately CA$3,501,949, the company noted.

The Catalyst: Copper is Everywhere

Ahead of the Herd on July 13 highlighted that although the U.S. imported around 1 million tonnes of refined copper in 2024, it only had two operational smelters, creating a capacity gap that hindered any substantial increase in domestic refining in the short term.

Jefferies analysts were quoted saying, "The U.S. does not have nearly enough mine/smelter/refinery capacity to be self-sufficient in copper," and they anticipated that tariffs would result in "continued significant price premiums in the U.S. relative to other regions."

Rob Haworth from U.S. Bank emphasized copper's vital role in daily 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, complicating any immediate efforts to boost domestic output. Oxford Economics economist Grace Zwemmer noted that the tariff would raise costs for manufacturers across sectors like construction, electronics, and automotive. ING strategist Ewa Manthey added that while a short-term stockpile of imported copper might offer temporary relief, "higher copper prices also risk higher inflation, raising costs for U.S. manufacturers without a domestic alternative available."

According to the Swedish news website Evertiq on September 22, copper prices experienced modest increases across major exchanges Monday as market participants assessed the potential consequences of a production stoppage at Indonesia's Grasberg mine, the world's second-largest copper producer.

On the London Metal Exchange, three-month copper contracts were trading at US$9,994 per tonne, slightly up from Friday's closing price of US$9,989, the site reported. In New York, COMEX copper reached US$4.6355 per pound, marking a 0.17% rise, while in Shanghai, the price climbed 0.35% to 80,100 yuan per tonne.

Freeport-McMoRan, the operator of the Grasberg mine, has halted underground operations following an incident where heavy mud trapped several workers. Indonesian media reported that two bodies have been recovered, with five miners still unaccounted for. The company is continuing rescue efforts but has not specified when full production might resume. Grasberg contributes a substantial portion of the global copper supply, and an extended disruption could further tighten an already constrained market.

Citigroup analysts recently highlighted that copper prices could reach US$12,000 per tonne by 2026, driven by supply challenges and strong demand from the energy and technology sectors, according to the Evertiq report.

Ownership and Share Structure

Strategic entities hold 19% of World Copper, including Wealth Minerals Ltd. (WML:TSX.V; WMLLF:OTCQB) at 7.8%, according to Refinitiv.

About 16% is owned by management and insiders, including Robert Kopple with 13.65%. Institutions hold 2% The rest is retail.

As for share structure, World Copper Ltd. had 262.93 million shares outstanding and a market capitalization of US$10.51 million. Its 52-week trading range was between US$0.03 and US$0.11 per share.