Catalyst Copper (CCY-TSXV; C$0.175) has closed the acquisition of an advanced copper project
and raised C$10.5 million to fund further work. In December, the company which was then called
Svit Gold Corp, announced an option on the La Verde copper deposit in Mexico held by Teck
Corp. Catalyst can earn 60% by paying $6 million to Teck and spending $10 million on the project
over the next two years. Historic work outlined 73 million tonnes at a grade of 0.7% copper (not a
compliant resource estimate). Catalyst and Teck geologists believe that there is potential for a
much larger deposit. To that end, Teck retains a back-in right, allowing them to earn back to a 60%
interest upon Catalyst completing its earn-in. If Teck does not exercise its back-in, Catalyst can buy
the Teck interest for $20 million.
At the current share price, Catalyst is valued at only a nickel a pound for its share of the copper
already outlined in the historic estimate. That is a low price for a deposit of this quality, and gives
no credit for the upside potential. Those who bought Svit when it was introduced here have seen a
triple. Catalyst is worth holding on to as the company is run by a very capable group and the
project has scope to be much larger.