Columbus Copper (CCU.V) has signed a deal with S2M2 Coal (a private Australian company) whereby S2M2 can earn an initial 51% interest in the Kavaklitepe Gold project in Turkey by making $400,000 in cash payments and incurring $2.5M in exploration expenditures on the property within three years. S2M2 can increase its ownership in Kavaklitepe by paying an additional $500,000 and completing a bankable feasibility study.
We see this agreement as a positive development, as Columbus Copper will receive a first payment of $250,000 in cash within a month so the company won’t have to raise additional money through a private placement.
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Disclosure: The author holds a long position in Columbus Copper. Please see our disclaimer for current positions.
