World Copper Announces Amendment to Letter Agreement for the Acquisition of the Zonia Copper Oxide Project
#2710-200 Granville Street
Vancouver, BC, Canada, V6C 1S4
T: 604-638-3287 / F: 604-408-7499
www.worldcopperltd.com
NR-21-10 June 9, 2021
World Copper Announces Amendment to Letter Agreement for the
Acquisition of the Zonia Copper Oxide Project
FOR IMMEDIATE RELEASE...Vancouver, British Columbia: World Copp er Ltd. (" World
Copper" or the "Company"; TSXV: WCU) announces that, further to its news release of April 20,
2021, it has reached an agreement to amend the letter agreement dated April 13, 2021 with Cardero
Resource Corp. (" Cardero"; TSXV: CDU), whereby the Company agreed to acquire 100% of
Cardero's Zonia copper oxide project located in central Arizona ("Zonia") by way of business
combination between the Company and Cardero (the "Proposed Transaction").
Summary of Amendments
The terms of the Proposed Transaction have been amended to provide that, upon the closing of the
Proposed Transaction, and subject to acceptance by the TSX Venture Exchange (the "TSXV"), the
Company will grant to Robert Kopple, a controlling shareholder of Cardero, or an entity controlled
by him (the " Royalty Holder") an option (the " Royalty Option") to acquire a 1% net smelter
returns royalty (the "Royalty") on Zonia. The Royalty Option may be exercised by the Royalt y
Holder, in its sole discretion, by paying to World Copper an amount equal to approximately $1.41
million. At the election of World Copper or the Royalty Holder, 100% of the Kopple Royalty can be
bought-out by World Copper in common shares of World Copper, each issued at a deemed price
equal to the offering price of the previously announced concurr ent private placement (see news
release dated April 13, 2021), for an approximate buy-out amount of $3.0 million to $3.87 million.
In connection with the amendment to the terms of the Proposed T ransaction, the parties have
extended the deadline for the execution of the definitive transaction agreement to June 30, 2021.
About Zonia
Zonia is located in the Walnut G rove Mining District, Yavapai C ounty, Arizona, and consists of
261 patented (96) and unpatented (185) mineral claims, and 566.85 acres of surface rights acquired
from the State of Arizona, all totaling 4,279.55 acres.
Zonia is a near-surface, copper-oxide resource and a brownfield s site having already been mined
in the late 1960s and '70s. The project has been significantly de-risked with over 50,000 metres
of drilling completed to date a nd with substantial amounts of d etailed engineering completed.
Zonia contains Measured Mineral Resources of 15.6 million short tons grading 0.43% copper
(129.3 million pounds of copper), Indicated Mineral Resources of 61.4 million short tons grading
0.31% copper (380.6 million pounds of copper) and Inferred Mine ral Resources of 27.2 million
short tons grading 0.28% copper (154.6 million pounds of copper ) at a 0.2% total copper cut-off
grade. A preliminary economic a ssessment dated April 17, 2018, effective date March 22, 2018
(the "PEA") was prepared by Global Resource Engineering Ltd., which sugg ests that the project
World Copper Ltd. - 2 - June 9, 2021
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#2710-200 Granville Street
Vancouver, BC, Canada, V6C 1S4
T: 604-638-3287 / F: 604-408-7499
www.worldcopperltd.com
can be advanced utilizing low-co st open pit mining and heap lea ch with SX-EW processing to
produce pure copper cathode (a copy of the PEA technical report is available on Cardero's SEDAR
profile at www.sedar.com).
Zonia was pre-stripped during mining in the late 1960s and 1970s so that, as described in the PEA,
the strip ratio is a low 1:1. Furthermore, GRE outlines a mine plan and development strategy
entirely on private land, which significantly reduces the timeline for permitting. At a copper price
of $3.00/lb, Zonia shows an after-tax NPV at 6% of $225 million, and an IRR of 29.0%.
The PEA is preliminary in nature, it includes Inferred Mineral Resources that are considered too
speculative geologically to have the economic considerations ap plied to them that would enable
them to be categorized as mineral reserves, and, as such, there is no certainty that the PEA results
will be realized. Mineral resources are not mineral reserves a nd do not have demonstrated
economic viability as there is no certainty that all or any par t of the resources will be converted
into reserves.
In addition to the established resource, the Zonia land positio n contains a copper-molybdenum
geochemical anomaly (associated w ith depressed manganese values ) that is similar in intensity
and scale (1000 by 1500 metres) to the main resource, and withi n the same prospective geology.
This anomaly is located two kilo meters northeast of the resourc e and represents a high-priority
copper-oxide porphyry exploration drill target.
Additional Information
Additional information about the Company or Cardero is available under their respective SEDAR
profiles available at www.sedar.com.
Qualified Person
John Drobe, P.Geo., a qualified person as defined by NI 43-101, has reviewed the scientific and
technical information that forms t he basis for this news releas e and has approved the disclosure
herein. Mr. Drobe is not independent of the Company as he is a consultant of World Copper.
ABOUT WORLD COPPER LTD.
World Copper Ltd., headquartered in Vancouver, BC, is a Canadia n resource company focused
the exploration and development of its two primary copper porph yry projects, Escalones and
Cristal, both located in Chile. World Copper is pursuing five copper porphyry targets, one with
estimated mineral resources, sign ificant soluble copper mineral ization, and exciting potential to
expand the resource base.
Escalones has estimated mineral resources of 185 million tonnes of 0.33% copper (0.37% CuEq)
Indicated and 254 million tonnes of 0.39% copper (0.43% CuEq) I nferred, based on nearly
25,000m of drill core from 53 holes. In addition, three significant hydrothermal alteration zones,
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#2710-200 Granville Street
Vancouver, BC, Canada, V6C 1S4
T: 604-638-3287 / F: 604-408-7499
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each measuring between 2,000m and 3,000m in diameter, lie 8-10k m to the north of the main
discovery.
Mineral resources are not mineral reserves and do not have demo nstrated economic viability as
there is no certainty that all or any part of the resources wil l be converted into reserves. Inferred
Mineral Resources are that part of a mineral resource for which quantity and grade or quality are
estimated on the basis of limited geological evidence and sampling. It is reasonably expected that
the Inferred Mineral Resources could be upgraded to Indicated Mineral Resources with continued
exploration.
The World Copper team has a unique skill in navigating the mining sector within Chile, with some
members having worked in the country for more than 40 years and with discovery success.
On Behalf of the Board of Directors of
WORLD COPPER LTD.
"Nolan Peterson"
Nolan Peterson
Chief Executive Officer
For further information, please contact:
Nolan Peterson or Michael Pound
Phone: 604-638-3665
E-mail: [email protected]
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Neither TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSXV) accepts
responsibility for the adequacy or accuracy of this news release.
Cautionary Note Regarding Forward-Looking Statements
This news release contains forward-looking statements and forward-looking information (collectively, "forward-
looking statements") within the meaning of applicable Canadian and U.S. securities legislation, including the United
States Private Securities Litigation Reform Act of 1995. A ll statements, other than statements of historical fact,
included herein including, without limitation, the Company's expectation that it and Cardero will be able to complete
the Proposed Transaction, the closing and amount of the private placement, that Zonia can be advanced utilizing low-
cost open pit mining and heap leach, the results of the PEA (including, without limitation the NPV, IRR, estimated
costs and average rate of production), the anticipated exploration program results from exploration activities and the
anticipated business plans and timing of future activities of the Company, including the timing for the closing of the
World Copper Ltd. - 4 - June 9, 2021
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#2710-200 Granville Street
Vancouver, BC, Canada, V6C 1S4
T: 604-638-3287 / F: 604-408-7499
www.worldcopperltd.com
Proposed Transaction, are forward-look ing statements. Although the Company believes that such statements are
reasonable, it can give no assurance that such expectations will prove to be correct. Forward-looking statements are
typically identified by words su ch as: "believes", "expects", "anticipates", "intends", "estimates", "plans", "may",
"should", "would", "will", "potential", "scheduled" or variations of such words and phrases and similar expressions,
which, by their nature, refer to future events or results that may, could, would, might or will occur or be taken or
achieved. In making the forward-looking statements in this news release, the Company has applied several material
assumptions, including without limitation, that it will be able to negotiate and enter into a definitive agreement with
respect to the Proposed Transaction, and that it will obtain TSXV acceptance and the required corporate approvals
of the Proposed Transaction, that there will be investor interest in the private placement, market fundamentals will
result in sustained copper and precious metals demand and prices, the receipt of any necessary permits, licenses and
regulatory approvals in connection with the future development of the Company's projects in a timely manner, the
availability of financing on suitable terms for the development, construction and continued operation of such projects
and the ability to comply with environmental, health and safety laws.
Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the
actual results, performance or achievements of the Company to differ materially from any future results, performance
or achievements expressed or implied by the forward-looking information. Such risks and other factors include,
among others, requirements for additional capital, actual results of exploration activities, the reasonability of the
economic assumptions at the basis of the results of the PEA for Zonia, the estimation or realization of mineral reserves
and mineral resources, future prices of copper, changes in general economic conditions, changes in the financial
markets and in the demand and market price for commodities, lack of investor interest in the private placement,
accidents, labour disputes and other risks of the mining industry, delays in obtaining governmental approvals
(including acceptance of the Proposed Transaction and the private placement by the TSXV), permits or financing or
in the completion of development or construction activities , risks relating to epidemics or pandemics such as
COVID-19, including the impact of COVID-19 on the Company's business, financial condition and results of
operations, changes in laws, regulations and policies affecting mining operations, title disputes, the timing and
possible outcome of any pending litigation, environmental issues and liabilities, as well as the risk factors described
in the Company's annual and quarterly management's discussion and analysis and in other filings made by the
Company with Canadian securities regulatory authorities under the Company's profile at www.sedar.com.
Readers are cautioned not to place undue reliance on forward-looking statements. The Company undertakes no
obligation to update any of the forward-looking statements in this news release or incorporated by reference herein,
except as otherwise required by law.