The Newfoundland explorer Leocor Gold Inc. (CSE: LECR) (OTC: LECRF) plans to broaden its portfolio by investing C$3 million in a company mining copper in an American state producing 70 per cent of the country’s supply.
On Tuesday, Leocor announced that it would complete a private placement in Intrepid Metals Corp. (TSX-V: INTR). Intrepid will use no less than $2.8 million to develop its Corral copper project in Cochise County, Arizona. Leocor says it specifically made the investment to help advance that project.
Corral has more than 1,800 acres of patented mining claims and surface rights. It is located within 24 kilometres of Tombstone, a famous mining town.
The price of copper rose to a 4.5 month high on Wednesday at C$5.12 per pound. It has been steadily rising since early 2020.
That demand is partly attributed to accelerated electric vehicle production globally. Intrepid says the average EV requires 184 pounds of copper. The company also focuses on zinc and silver production in Arizona.
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Focus on Newfoundland
Leocor holds a vast exploration package in Newfoundland, its primary focus. The company says the province is the new frontier for gold mining.
“Newfoundland is getting ready to undergo one of the most aggressive exploration phases since the 1988-89 rush where more than 80 per cent of the known gold showings were discovered,” Alex Klenman, CEO of Leocor, said.
The explorer has a 144,000 hectare exploration package in the province. Historically, grab samples from the company’s Dorset project in the Baie Verte district have returned up to 409 grams per tonne gold.
Calibre Mining Corp. (TSX: CXB) (OTCQX: CXBMF) recently chose to invest in Newfoundland gold. The mid-tier miner will close its merger with Marathon Gold Corp. (TSX: MOZ) in January. The combined company will operate Atlantic Canada’s largest gold mine within the province.
The Valentine gold project in Central Newfoundland is expected to enter the commercial production phase by the end of 2025. Marathon has already invested C$190 million in the operation.
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