VANCOUVER, British Columbia, Nov. 16, 2023 (GLOBE NEWSWIRE) -- NorthWest Copper Corp. (TSX.V NWST) (“NorthWest” or the “Company”) is pleased to provide an update on its financial, geological and ESG programs and position.
Grant Sawiak, Executive Chair of NorthWest commented: "The newly elected Board of Directors of NorthWest (“Board”) is committed to not only align its interests with shareholders but in doing so to promote transparency in all aspects of the Company's operations. With these principles in mind, we wish to report on the status of NorthWest as it existed when we were elected on September 26, 2023 following the 5 month proxy contest and the changes we have implemented or are implementing to the operations and financial position of NorthWest.”
Cash in the bank as at September 30, 2023 was approximately $200,000. Amounts paid during the past two financial quarters and accounts payable at September 30, 2023 include in aggregate professional fees incurred by the previous Board of Directors of approximately $1,000,000 in relation to their unsuccessful proxy contest with the current Board of Directors. These fees were incurred primarily from Norton Rose Fulbright Canada LLP law firm, Kingsdale Advisors and Longview Communications (“Professional Advisors”). This amount compares to the approximately $300,000 charged by certain current Board members for their expenses incurred as part of the proxy contest.
The Board is in the process of reviewing the fees of the Professional Advisors as well as amounts outstanding to former executives. Creditors and accruals as at September 30, 2023 also includes unpaid directors' remuneration of approximately $150,000.
During February 2023 the Company raised $5,059,330 in a private placement to be used for exploration at the Company’s portfolio of projects and general working capital. Since February 2023, only approximately $1,500,000 was spent on exploration.
In order to address the Company’s financial needs, the Company is considering a combination of debt financing; a rights offering with concurrent private placement of shares to Accredited Investors resident outside the qualifying jurisdictions; and flow-through funding for the exploration work targeted by the Company.
The Company’s strategy is to focus on exploration rather than development for the short to medium term. The Company already has resource estimates for the Lorraine, Kwanika and Stardust projects and a PEA on a combined Kwanika-Stardust option. The focus for 2024 will be to identify priority targets across its portfolio of projects for its upcoming exploration season, as set out in our press release of November 7, 2023.
Exploration targets have mainly been prioritized in accordance with their biggest potential value impact for shareholders and will be tailored according to the availability of exploration funding.
The Company has also received some interest in the past from parties that were potentially interested in investing at a property level rather than a corporate level. The Company is in the process of re-assessing these expressions of interest.
Finally, the Board of Directors is committed to transparent reporting to shareholders and will set out an objective and measurable exploration program that will allow reporting on: (1) how and where money was spent: (2) results obtained; and (3) next steps to build on prior success. We expect that a detailed exploration planning press release will be released in the early spring of 2024.
ESG is a key focus area for the Board and to this extent it has determined that the reports currently provided to First Nations should also be shared with all NorthWest stakeholders. These reports will be made available through press releases over the coming months covering such items as the Annual ESG Report; Collaborating with First Nations; and Updating Wildlife Management Plans. The Board believes that the current efforts from management will provide NorthWest with a strong platform of mutual good faith and trust for future consulting with First Nations.
The Board believes in proactive investor communication and is in the process of revising its investor engagement program.
The Board has also reviewed the internal reporting structures and have implemented certain changes to ensure increased efficiency by management and seamless and regular reporting by management to respective disciplines on the Board.
Finally, in order to avoid unnecessary dilution at these depressed share prices, the Board has resolved not to compensate board members with equity-based compensation until further notice.
About NorthWest Copper:
NorthWest Copper is a copper-gold explorer and developer with an exciting pipeline of projects in British Columbia. With a robust portfolio in a tier one jurisdiction, NorthWest Copper is well positioned to participate fully in a strengthening global copper market. We are committed to responsible mineral exploration which involves working collaboratively with First Nations to ensure future development incorporates stewardship best practices and traditional land use. Additional information can be found on the Company’s website at www.northwestcopper.ca.
On Behalf of the Board of Directors of NorthWest Copper Corp.
Director, Executive Chair
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release
Cautionary Statement Regarding Forward-Looking Statements
All statements in this press release about anticipated future events or results constitute forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as “seek”, “anticipate”, “believe”, “plan”, “estimate”, “expect” and “intend” and statements that an event or result “may”, “will”, “should”, “could” or “might” occur or be achieved and other similar expressions. All statements, other than statements of historical fact, included herein, are forward-looking statements. Although NorthWest believes that the expectations reflected in such forward-looking statements and/or information are reasonable, undue reliance should not be placed on forward-looking statements since NorthWest can give no assurance that such expectations will prove to be correct. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements, including the risks, uncertainties and other factors identified in NorthWest’s periodic filings with Canadian securities regulators. Forward-looking statements are subject to business and economic risks and uncertainties and other factors that could cause actual results of operations to differ materially from those contained in the forward-looking statements. Important factors that could cause actual results to differ materially from NorthWest’s expectations include risks associated with the business of NorthWest; risks related to reliance on technical information provided by NorthWest; risks related to exploration and potential development of the Company’s mineral properties; business and economic conditions in the mining industry generally; fluctuations in commodity prices and currency exchange rates; uncertainties relating to interpretation of drill results and the geology, continuity and grade of mineral deposits; the need for cooperation of government agencies and First Nation groups in the exploration and development of properties and the issuance of required permits; the need to obtain additional financing to develop properties and uncertainty as to the availability and terms of future financing; the possibility of delay in exploration or development programs and uncertainty of meeting anticipated program milestones; uncertainty as to timely availability of permits and other governmental approvals including TSXV approval of the Transaction; and other risk factors as detailed from time to time and additional risks identified in NorthWest’s filings with Canadian securities regulators on SEDAR+ in Canada (available at www.sedarplus.ca). Forward-looking statements are based on estimates and opinions of management at the date the statements are made. NorthWest does not undertake any obligation to update forward-looking statements except as required by applicable securities laws. Investors should not place undue reliance on forward-looking statements.