World Copper Announces Closing of Zonia Project Royalty Sale
#2710 - 200 Granville Street
Vancouver, BC, Canada, V6C 1S4
T: 604-638-3287 / F: 604-408-7499
www.worldcopperltd.com
NR 22-21 September 6, 2022
World Copper Announces Closing of Zonia Project Royalty Sale
FOR IMMEDIATE RELEASE...Vancouver, British Columbia: World Copper Ltd. (" World Copper" or
the "Company"; TSXV: WCU, OTCQX: WCUFF, FRA:7LY0) announces that the previously announced
sale to Electric Royalties Ltd. ("Electric Royalties") of a gross revenue royalty ("GRR") and royalty option
package on the Company's wholly owned Zonia Copper Oxide project (" Zonia" or the "Zonia Project"),
located in the Walnut Grove Mining District, Yavapai County, Arizona, United States (the "Transaction"),
has now closed. On closing, the Company received CAD $1.55 million (gross) in cash (the " Cash
Consideration") and 2,000,000 Electric Royalties' common shares (the "Consideration Shares") from the
sale of a 0.5% GRR (the "Zonia Royalty") on the Zonia Project to Electric Royalties.
Nolan Peterson, CEO and President of World Copper Ltd commented, "World Copper is excited to
close this transaction and bring Electric Royalties on as one of Zonia's first partners. The Zonia Project has
robust economics and an achievable timeline to production. This initial support from Electric Royalties
enables us to continue our restart of development activities at the project and carry out significant work in
unlocking the project's full value. I look forward to working more closely with Electric Royalties'
management team and we look forward to continuing to update shareholders on our progress."
Zonia Project Development
Following an internal technical review of the exploration and development potential of the Zonia Project
(see news release dated May 2, 2022), World Copper has assessed Zonia's potential to host significantly
more copper mineralization than outlined in the current resource estimate (76.8 Mt of 0.33% Cu Measured
& Indicated, 27.2 Mt at 0.28% Cu Inferred). The Company is currently working on exploration drill targets
along the margins of the Zonia deposit as well as a separate, significant copper-molybdenum-manganese in
rock geochemical anomaly located approximately two kilometres north- northeast of the established
resource ("Zonia Norte").
In addition to the exploration targets identified, World Copper intends to update the Zonia 2018 preliminary
economic assessment, dated April 17, 2018 (with an effective date of March 22, 2018), prepared by Global
Resource Engineering Ltd. for Cardero Resource Corp. (the "PEA"), a copy of the technical report prepared
in accordance with NI 43-101 with respect to the PEA is available on the Cardero Resource Corp. SEDAR
profile at www.sedar.com.
World Copper plans to update the PEA: (i) to reflect current market conditions; (ii) to include the full extent
of the available resource; (iii) to examine different sizes and concepts as part of a strategic review of the
million ton asset; and (iv) to incorporate additional drill and geological data, as warranted. The PEA used
$3.00/lb copper for a base case scenario producing 92.6 million tons of leachable material over an 8.6-year
mine life. At a copper price of $3.00/lb, the Zonia Project shows an after -tax NPV@6% of $225 million,
an NPV@8% of $192 million, an NPV@10% of $163 million, and an IRR of 29.0%; the payback period
is 2.89 years. The PEA concluded the Zonia Project is most sensitive to copper price which is an important
consideration for improving the economics. The updated PEA wi ll be part of a broad strategic review of
the Zonia Project, and assuming a successful PEA update the Company would aim to complete a Pre-
Feasibility or Feasibility level study in 2023.
World Copper Ltd. - 2 - September 6, 2022
NR22-21 Continued
#2710 - 200 Granville Street
Vancouver, BC, Canada, V6C 1S4
T: 604-638-3287 / F: 604-408-7499
www.worldcopperltd.com
The PEA is considered preliminary in nature, contains numerous assumptions and includes Inferred Mineral
Resources that are considered too speculative, geologically, to have the economic considerations applied
that would enable them to be classified as Mineral Reserves. There is no certainty that the results of the
PEA (or any update thereto) will be realized. No Mineral Reserves have been estimated for Zonia. Mineral
Resources are not Mineral Reserves and do not have demonstrated economic viability. Inferred Mineral
Resources are that part of the Mineral Resource for which quantity and grade, or quality are estimated based
on limited geologic evidence and sampling, which is sufficient to imply but not verify grade or quality
continuity. Inferred Mineral Resources may not be converted to Mineral Reserves. It is reasonab ly
expected, though not guaranteed, that most Inferred Mineral Resources could be upgraded to Indicated
Mineral Resources with continued exploration. Mineral Resources are captured within an optimized pit
shell and meet the test of reasonable prospects for economic extraction. All dollar amounts in the preceding
paragraphs regarding the PEA are reported in US dollars unless otherwise noted.
Summary of the Transaction
Pursuant to the terms of an amended and restated letter agreement dated August 17, 2022
(the "Agreement") among the Company, its wholly owned subsidiary Cardero Copper (USA) Ltd.
("Cardero Copper"), Electric Royalties, and its wholly owned subsidiary Electric Royalties (USA) Inc.
("Electric Royalties Subco"), which replaced and superseded the previously announced letter agreement
dated June 10, 2022 (see news release dated June 13, 2022), Electric Royalties, through Electric Royalties
Subco, acquired the Zonia Royalty in consideration for paying to World Copper the Cash Consideration
and delivering the Consideration Shares. Additionally, Cardero Copper granted Electric Royalties Subco
the option, exercisable for a period of 15 months following the closing of the Trans action, to increase the
amount of the Zonia Royalty by 0.5% (for an aggregate total of 1.0% GRR on the Zonia Project) by paying
to Cardero Copper an additional CAD $3.0 million in cash.
Electric Royalties Subco was also granted the option, for a period of 24 months from the date that World
Copper (i) obtains a technical report in respect of the Zonia Norte project located northeast to the existing
Zonia Project, prepared in accordance with National Instrument 43- 101 Standards of Disclosure for
Mineral Projects ("NI 43 -101") and which contains an estimate of inferred mineral resources; and
(ii) delivers a copy of such report to Electric Royalties Subco, to acquire a 1.0% GRR on the Zonia Norte
project (the " Zonia Norte Royalty "), exercisable by Electric Royalty Subco paying an additional
CAD $3.0 million in cash to Cardero Copper.
Qualified Person
John Drobe, P.Geo., a qualified person as defined by NI 43- 101, has reviewed the scientific and technical
information that forms the basis for this news release and has approved the disclosure herein. Mr. Drobe
is not independent of the Company as he is the Chief Geologist of the Company.
ABOUT WORLD COPPER LTD.
World Copper Ltd., headquartered in Vancouver, BC, is a Canadian resource company focused on the
exploration and development of its copper porphyry projects: Escalones and Cristal in Chile, and Zonia in
Arizona. Two of these projects have estimated resources with significant soluble copper mineralization,
and each has additional copper porphyry targets with exciting potential to expand the resource base.
World Copper Ltd. - 3 - September 6, 2022
NR22-21 Continued
#2710 - 200 Granville Street
Vancouver, BC, Canada, V6C 1S4
T: 604-638-3287 / F: 604-408-7499
www.worldcopperltd.com
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, or to schedule a Zoom meeting with Management, please contact:
Nolan Peterson or Michael Pound
Phone: 604-638-3287
E-mail: [email protected]
For all Investor Relations inquiries, please contact:
John Liviakis
Liviakis Financial Communications Inc.
Phone: 415-389-4670
For all Public Relations inquiries, please contact:
Nancy Thompson
Vorticom, Inc.
Office: 212-532-2208 | Mobile: 917-371-4053
Follow Us:
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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 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. All statements, other
than statements of historical fact, included herein including, without limitation, the exercise by Electric Royalties of
the options to increase the amount of the Zonia Royalty by 0.5% and/or to acquire the Zonia Norte Royalty, anticipated
exploration program results from exploration activities, the discovery and delineation of mineral
deposits/resources/reserves and the anticipated business plans and timing of future activities of the Company are
forward-looking 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 such 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
World Copper Ltd. - 4 - September 6, 2022
NR22-21 Continued
#2710 - 200 Granville Street
Vancouver, BC, Canada, V6C 1S4
T: 604-638-3287 / F: 604-408-7499
www.worldcopperltd.com
forward-looking statements in this news release, the Company has applied several material assumptions, including
without limitation, that market fundamentals will result in sustained copper 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 the Company's projects and its 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, operating and technical di fficulties in connection with mineral
exploration and development activities, actual results of exploration activities, including on the Zonia P roject, the
estimation or realization of mineral reserves and mineral resources, the timing and amount of estimated future
production, the costs of production, capital expenditures, the costs and timing of the development of new deposits,
requirements for additional capital, 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 future financings,
accidents, labour disputes and other risks of the mining industry, delays in obtaining governmental approvals
(including of the TSX Venture Exchange), 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 inability of the Company to obtain any necessary permits, consents, approvals
or authorizations, the timing and possible outcome of any pending litigation, environmental issues and liabilities, and
risks related to joint venture operations, and other risks and uncertainties disclosed in the company's continuous
disclosure documents. All of the Company's Canadian public disclosure filings may be accessed via www.sedar.com
and readers are urged to review these materials.
Readers are cautioned not to place undue reliance on forward-looking statements. The Company does not undertake
any obligation to update any of the forward- looking statements in this news release or incor porated by reference
herein, except as otherwise required by law.
Cautionary Note to United States Investors
World Copper prepares its disclosure in accordance with the requirements of securities laws in effect in Canada,
which differ from the requiremen ts of U.S. securities laws. Terms relating to mineral resources in this news release
are defined in accordance with NI 43- 101 under the guidelines set out in CIM Definition Standards on Mineral
Resources and Mineral Reserves, adopted by the Canadian Institute of Mining, Metallurgy and Petroleum Council on
May 19, 2014, as amended ("CIM Standards"). The U.S. Securitie s and Exchange Commission (the "SEC" ) has
adopted amendments effective February 25, 2019 (the "SEC Modernization Rules") to its disclosure rules to modernize
the mineral property disclosure requirements for issuers whose securities are registered with the SEC under the U.S.
Securities Exchange Act of 1934.
As a result of the adoption of the SEC Modernization Rules, the SEC will now recognize estimates of "measured
mineral resources", " indicated mineral resources" and "inferred mineral resources" , which are defined in
substantially similar terms to the corresponding CIM Standards. In addition, the SEC has amended its definitions of
"proven mineral reserves" and "probable mineral reserves" to be substantially similar to the corresponding CIM
Standards.
U.S. investors are cautioned that while the foregoing terms are " substantially similar" to corresponding definitions
under the CIM Standards, there are differences in the definitions under the SEC Modernization Rules and the CIM
Standards. Accordingly, there is no assurance any mineral resources that World Copper may report as " measured
mineral resources", "indicated mineral resources " and "inferred mineral resources " under NI 43- 101 would be the
same had World Copper prepared the resource estimates under the standards adopted under the SEC Modernization
Rules.
In accordance with Canadian securi ties laws, estimates of "inferred mineral resources " cannot form the basis of
feasibility or other economic studies, except in limited circumstances where permitted under NI 43-101.