Flagship's A$6.5m Whipsaw Deal Looks Timely as Copper Prices Soar

Flagship Minerals made a savvy move in June by acquiring the Whipsaw copper project in British Columbia for A$6.5 million.

The company's timing is spot on, considering copper prices have hit a record high of US$14,703 per tonne on the London Metal Exchange.

Canada's mining industry is also experiencing a revival, with the BC Government aiming to attract C$200 billion in major-project investment by 2035 under its Look West Strategy.

The Whipsaw project has a drill-supported exploration target of 510 million tonnes to 1.02 billion tonnes grading 0.2 to 0.4 per cent copper equivalent, with 58 historical drill holes pointing to significant scale in the area.

Flagship's deal gives it the right to acquire 100 per cent of Whipsaw, and if successful, a further A$5 million will be payable only if Flagship defines a 300-million-tonne JORC mineral resource averaging 0.4 per cent copper equivalent.

The company is considering spinning Whipsaw into a standalone ASX-listed copper vehicle, potentially including an in-specie distribution to existing shareholders.