C3 Metals secures $75M deal with Freeport-McMoRan – ICYMI

C3 Metals Inc (TSX-V:CCCM, OTC:CARCF)[1] earlier this week announced a significant £75 million earn-in agreement with Freeport-McMoRan, a major global copper and gold producer. Under the terms, Freeport will invest £25 million over the first five years, with the potential to increase its stake in C3 Metals' Bellas Gate Project in Jamaica to 75%. Below is a Q&A discussion with Dan Symons, CEO of C3 Metals, conducted with Proactive's Steve Darling.

Proactive: Welcome back inside our Proactive newsroom. Joining me now is Dan Symons, CEO of C3 Metals Inc. Dan, it's great to have you back again.

How are you? Dan Symons: I'm doing well, Steve. Thanks for having me.

A very big announcement out from the company about your project in Jamaica. Before we get into the details, tell me a little bit about this project. The Bellas Gate Project in Jamaica is something we've been systematically exploring for the past two and a half years.

We've conducted geophysical analysis, surface data collection, soil sampling, rock sampling, and drilled about 12,000 meters. Over this 18-kilometer strike extent, we've identified 14 porphyry, 30 epithermal, and multiple volcanic red bed-style copper-gold prospects. When you see something like this, it signals the potential for a new and emerging porphyry belt.

[embedded content] The big announcement today is that you've signed an agreement with Freeport-McMoRan, a major global mining company. This deal will see them contribute £75 million to the project.

Walk us through the significance of this agreement. When investors hear the words "junior explorer" and "porphyry", they often think about the capital intensity required. Developing 14 porphyry prospects over 18 kilometers is a massive undertaking.

We knew we needed a strong partner, and attracting Freeport is a major endorsement of the district-scale potential here. Freeport is a £55 billion US market cap company. Last year, they recorded £10 billion of adjusted EBITDA and £7 billion in operating cash flow.

They are looking for the next major copper district, and their involvement confirms they see potential here. The initial investment is £25 million over the first five years, allowing C3 Metals to retain operational control. How important is that aspect of the deal?

Freeport conducted extensive due diligence--examining the project, jurisdiction, government, environmental factors, and our technical team. They've been highly complimentary of our work. We agree on the geologic models, and they have confidence in our team to manage this initial phase.

This structure allows us to advance the project while maintaining control in the early years. If all goes well, Freeport could increase its stake to 75% ownership. How does this impact C3 Metals and its shareholders?

We looked at this deal from a risk-reward perspective. We can't yet confirm if the project has economic viability, but what we've drilled so far--within the first 500 meters--shows grades comparable to Filo Mining, which recently attracted a £4.5 billion CAD bid from BHP and Lundin. To unlock the full potential, we'll need deep drilling and advanced geophysics, which is capital-intensive for a junior explorer.

This deal lets us prove the potential with Freeport's capital. If a multi-billion-dollar discovery is there, we get a free carry to confirm it. If it's not, we haven't diluted shareholders to find out.

The market reaction must be interesting. When a name like Freeport aligns with C3 Metals, it must generate excitement. Absolutely.

Freeport is one of the leading global copper and gold producers. They operate three of the world's top 20 copper-producing mines. Their involvement is a huge endorsement of our project, our technical team, and the work we've done.

Quotes have been lightly edited for clarity and style

References

1. ^ C3 Metals Inc (TSX-V:CCCM, OTC:CARCF) (www.proactiveinvestors.com)