Faraday Copper Reports Second Quarter 2024 Financial Results
NEWS RELEASE August 1, 2024
Faraday Copper Reports Second Quarter 2024 Financial Results
August 1, 2024 – Vancouver, British Columbia – Faraday Copper Corp. (“Faraday” or the “Company”)
(TSX:FDY) announces its financial results for the three months ended June 30, 2024.
Highlights Year to Date
▪ Reported 29.08 metres (“m”) at 0.62% copper within 190.25 m at 0.23% copper in at the Prada breccia
in the American Eagle area at the Copper Creek Project, on July 25, 2024.
▪ Reported 20.07 m at 1.20% copper within 100.29 m at 0.42% copper in the American Eagle area at the
Copper Creek Project, on June 25, 2024.
▪ Completed a bought deal financing for a total of 28,750,000 common shares sold at a price of $0.80
per common share for aggregate gross proceeds to the Company of $23,000,000, on May 30, 2024.
▪ Reported 42.05 m at 0.41% copper expanding the near surface mineralization at rea 51 at the Copper
Creek Project, on May 14, 2024.
▪ Reported new gold assay results from the Keel Zone including 0.28 g/t gold and confirming 1.34%
copper over 103.64 m at the Copper Creek Project, on May 7, 2024.
▪ Reported 117.00 m at 0.40% copper near surface, including 23.37 m at 0.60% copper at Old Reliable
and drilling success continuing at Area 51 at the Copper Creek Project, on April 10, 2024.
▪ Reported positive metallurgical results for the Copper Creek Project on February 26, 2024.
▪ Reported 163.11 m at 0.85% copper within 380.60 m at 0.62% copper in the American Eagle area at
the Copper Creek Project, on February 21, 2024.
▪ Reported new mineralized breccias (Starship and Eclipse) 800 m southeast of the existing Mineral
Resource at the Copper Creek Project, on January 16, 2024 and March 4, 2024, respectively.
▪ Continued baseline environmental data collection, stakeholder mapping, and generative exploration
targeting at the Copper Creek Project to provide a pipeline of future targets through ongoing geological
mapping and recently reprocessed and newly acquired geophysical data.
Upcoming Copper Creek Milestones
▪ Ongoing results from the Phase III drill program
▪ Updated technical report in the first half of 2025
Copper Creek Project Update
The knowledge from the geological and structural model and the results from the Phase I and Phase II drill
programs, along with geophysical and air-borne spectral data sets, and economic criteria defined in the
Preliminary Economic Assessment1 base case, have contributed to the framework for the Phase III drill
program, which commenced in the fourth quarter of 2023. The focus of the ongoing Phase III drilling is on
expanding the mineral resource through improved delineation of high-grade mineralized zones and
reconnaissance drilling on new targets.
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With extensive historical exploration, over 200,000 metres of drilling and modest past production, significant
exploration upside remains. There are several hundred known breccia occurrences mapped at surface, of
which less than 20% have been drill tested and only 17 are included in the Mineral Resource Estimate1
(”MRE”).
In the Phase II drill program assay results confirmed the potential for gold to occur in economic
concentrations in certain phases of the mineralization. Gold is not currently included in the MRE. A sampling
program to gather sufficient data coverage for potential gold inclusion in future technical studies is largely
complete. The results from the Childs Aldwinkle and Copper Prince breccias, as well as the Keel
underground zone have been returned. The Company continues to evaluate other areas for potential
inclusion of gold in future mineral resource updates.
The Company has reported results from a metallurgical program focused on grind size optimization that
demonstrated the viability of coarse particle flotation, gold recoveries in concentrate and test work on near
surface oxide mineralization.
The Company is focusing on exploration at the property while continuing to advance technical studies,
environmental data gathering, and stakeholder outreach.
Financial Results
In Canadian dollars Three months ended
June 30, 2024 June 30, 2023
Exploration and evaluation expenses $4,332,148 $4,170,334
General and administration $569,467 $319,721
Share-based compensation $323,042 $618,688
Net loss $5,426,500 $5,497,051
Basic and diluted loss per share $0.03 $0.03
Note: The financial information in this table was selected from the Company's condensed interim consolidated financial
statements for the three months ended June 30, 2024 (the "Financial Statements"), which are available on SEDAR+ at
www.sedarplus.ca and the Company's website www.faradaycopper.com.
Selected Financial Information
In Canadian dollars June 30, 2024 December 31, 2023
Cash and cash equivalents $25,823,802 $14,901,206
Property and equipment $17,217,026 $16,278,872
Resource properties $4,955,328 $4,955,328
Total assets $48,321,566 $36,592,286
Note: The financial information in this table was selected from the Financial Statements, which are available on
SEDAR+ at www.sedarplus.ca and the Company's website www.faradaycopper.com.
Cash Flow, Liquidity and Capital Resources
The Company is a resource exploration stage company and does not generate any revenue and has been
mainly relying on equity -based financing to fund its operations. As at June 30, 2024, the Company had
cash and cash equivalents of $25,823,802 (December 31, 2023 - $14,901,206) and current assets less
current liabilities of $24,236,427 (December 31, 2023 - $12,793,784). During the six months ended June
30, 2024, cash used in operating activities was $10,752,689 (2023 - $12,564,688), cash used in investing
activities was $529,462 (2023 - $13,284,658), and cash provided by financing activities was $22,138,253
(2023 - cash provided $39,443,854). Cash used in investing activities was primarily related to the purchase
of land at the Copper Creek Project.
The Company will need to raise additional funding to finance its day -to-day operations and to enable the
Company to achieve its long -term business objectives. On May 30, 2024, the Company completed an
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equity-based financing for net proceeds of $22,134,765, which included share issuance costs of $865,235
to fund its operations.
Footnote
1 The Copper Creek Preliminary Economic Assessment and Mineral Resource Update are reported in the
report titled “Copper Creek Project NI 43 -101 Technical Report and Preliminary Economic Assessment”
with an effective date of May 3, 2023 available on the Company’s website at www.faradaycopper.com and
on the Company’s SEDAR+ profile at www.sedarplus.ca.
About Faraday Copper
Faraday Copper is a Canadian exploration company focused on advancing its flagship copper project in
Arizona, U.S. The Copper Creek Project is one of the largest undeveloped copper projects in North
America with significant district scale exploration potential . The Company is well -funded to deliver on its
key milestones and benefits from a management team and board of directors with senior mining company
experience and expertise. Faraday trades on the TSX under the symbol “FDY”.
For additional information please contact:
Stacey Pavlova, CFA
Vice President, Investor Relations & Communications
Faraday Copper Corp.
E-mail: [email protected]
Website: www.faradaycopper.com
Cautionary Note on Forward Looking Statements
Some of the statements in this news release, other than statements of historical fact, are “forward-looking statements” and are based
on the opinions and estimates of management as of the date such statements are made and are necessarily based on estimates and
assumptions that are inherently subject to known and unknown risks, uncertainties and other factors that may cause actual res ults,
level of activity, performance or achievements of Faraday to be materially different from those expressed or implied by such forward-
looking statements. Such forward -looking statements and forward -looking information specifically include, but are not limited to,
statements concerning the future drilling and exploration potential of the Copper Creek property.
Although Faraday believes the expectations expressed in such forward -looking statements are based on reasonable assumptions,
such statements should not be in any way construed as guarantees of future performance and actual results or developments may
differ materially. Accordingly, readers should not place undue reliance on forward-looking statements or information.
Factors that could cause actual results to differ materially from those in forward-looking statements include without limitation: market
prices for metals; the conclusions of detailed feasibility and technical analyses; lower than expected grades and quant ities of
resources; receipt of regulatory approval; receipt of shareholder approval; mining rates and recovery rates; significant capi tal
requirements; price volatility in the spot and forward markets for commodities; fluctuations in rates of exchange; tax ation; controls,
regulations and political or economic developments in the countries in which Faraday does or may carry on business; the speculative
nature of mineral exploration and development, competition; loss of key employees; rising costs of labour, supplies, fuel and
equipment; actual results of current exploration or reclamation activities; accidents; labour disputes; defective title to mi neral claims
or property or contests over claims to mineral properties; unexpected delays and costs inherent to consulting and accommodating
rights of Indigenous peoples and other groups; risks, uncertainties and unanticipated delays associated with obtaining and maintaining
necessary licenses, permits and authorizations and complying with permitting requirements, i ncluding those associated with the
Copper Creek property; and uncertainties with respect to any future acquisitions by Faraday. In addition, there are risks and hazards
associated with the business of mineral exploration, development and mining, including environmental events and hazards, industrial
accidents, unusual or unexpected formations, pressures, cave-ins, flooding and the risk of inadequate insurance or inability to obtain
insurance to cover these risks as well as “Risk Factors” included in Faraday ’s disclosure documents filed on and available at
www.sedarplus.ca.
This press release does not constitute an offer to sell or a solicitation of an offer to buy any securities in any jurisdiction to any person
to whom it is unlawful to make such an offer or solicitation in such jurisdiction. This press release is not, and under no circumstances
is to be construed as, a prospectus, an offering memorandum, an advertisement or a public offering of securities in Faraday in Canada,
the United States or any other jurisdiction. No securities commission or similar authority in Canada or in the United States has reviewed
or in any way passed upon this press release, and any representation to the contrary is an offence.