Canadian Copper Acquires Caribou Processing Plant Complex for $6.2 Million

Canadian Copper announced on October 28 that it has signed a term sheet and exclusivity agreement to acquire the Caribou processing plant complex from the New Brunswick government for $6.2 million. The company has already made a deposit of $225,000, with the deal expected to close on July 11, 2025.

According to Canadian Copper, this acquisition is a key step in accelerating production and reducing risk at its Murray Brook copper-zinc-lead-silver deposit, located 10 kilometers from the Caribou complex. The company plans to process ore from the Murray Brook deposit at the acquired plant.

The Caribou complex includes a 3,000-tonne-per-day milling facility, featuring a primary grinding circuit with one semi-autogenous grinding mill and one ball mill. The site also contains two regrinding circuits with three ISA mills and one ball mill, as well as a differential sulfide flotation plant, reagents preparation and addition systems, metallurgical and geochemical laboratories, a tailings management facility, an underground mine (which will remain dormant), grid power, and a water supply for operations.

Simon Quick, CEO of Canadian Copper, highlighted the strategic value of integrating the Murray Brook deposit with the fully permitted and constructed Caribou complex, which was operational as recently as August 2022. He stated, "By integrating our large Murray Brook deposit with an already-permitted and constructed Caribou complex, we aim to significantly reduce the schedule, capital cost, and permitting time required to produce copper, zinc, and lead concentrate from Murray Brook." Quick emphasized that the combination of a large open pit polymetallic resource with a nearby processing plant will help accelerate Canadian Copper's efforts to become a leader in critical metals production in Eastern Canada.

The Murray Brook deposit includes measured and indicated sulfide resources of 21.1 million tonnes, grading at 0.45% copper, 0.91% lead, and 2.49% zinc. The Caribou mine, which was shut down in August 2022, has been under care and maintenance since January 2023, with environmental compliance and plant maintenance managed by the New Brunswick government following the financial collapse of its former owner, Trevali Mining Corp.

Canadian Copper finalized an audit of the Caribou complex on October 2, and has engaged several consultants, including Ausenco Engineering Canada ULC, Pierre Lacombe P.Eng, and P&E Mining Consultants Inc., to undertake the design, development, and processing of the Murray Brook deposit. A preliminary economic assessment (PEA) is expected in the first half of next year.

The necessary copper flotation equipment for the plant has already been purchased and permitted, but installation has yet to take place. The installation of this equipment will be evaluated as part of the PEA.