CopperCorp Announces the Sale of the Skyline Copper-Gold Project

CopperCorp Resources Inc. (CPER) has entered into a binding tenement sale agreement dated 25 October 2026 to sell 100% of the Skyline Copper-Gold Project in western Tasmania to Skyline Copper Exploration Pty Ltd, a wholly-owned subsidiary of ASX-listed Bubalus Resources Limited (ASX: BUS). The announcement was released on 26 October 2026 (news_id 19974874).

Under the terms of the deal, CopperCorp will receive initial consideration valued at approximately A$3.0M. This includes an A$1.0M cash payment, which accounts for a A$100,000 exclusivity payment already received and is net of a bridge loan, plus 28,571,429 Bubalus shares at a deemed price of A$0.07 per share, valued at A$2.0M. The agreement also includes top-up shares to ensure CopperCorp holds at least approximately 19.95% of Bubalus.

The transaction includes a contingent A$1.5M milestone payment, payable in cash or Bubalus shares at Bubalus’s election, triggered by the definition of a JORC-compliant Measured and/or Indicated resource of at least 200,000 tonnes of contained copper-equivalent within five years of completion. Additionally, CopperCorp retains a royalty interest consisting of a 0.5% net smelter return (NSR) over EL16/2018 and a 2.0% NSR over each other Skyline licence. Bubalus holds a buy-back right to purchase the royalty for US$1.0M, exercisable by 1 January 2032, covering 1.0 percentage points over non-EL16/2018 licences and the entire 0.5% over EL16/2018.

Consideration shares will be held in escrow, with 25% becoming unrestricted at closing and further 25% tranches released at three, six, and nine months. CopperCorp may nominate one non-executive director to the Bubalus board while holding at least 10% of the company. CEO Steve Swatton will serve as a technical consultant to Bubalus for an initial six months, and key Tasmanian exploration staff are expected to be retained by Bubalus.

The deal is subject to several conditions precedent, including a Bubalus capital raising of approximately A$2.835M or demonstrated funds, TSXV acceptance, Mineral Resources Tasmania licence-transfer approval, and shareholder approvals from both Bubalus and CopperCorp. A finder’s fee of 7% of the transaction value in cash and shares is payable on completion, subject to TSXV acceptance. Bubalus also has the option of a bridge loan of up to A$150,000 at 10% per annum to maintain tenement standing, which is deductible from the A$1.0M cash payment at closing.

CopperCorp stated that the transaction monetizes the Skyline asset while maintaining exposure through the Bubalus stake and royalty, allowing the company to focus on its remaining approximately 626 km² AMC/Jasper Hills portfolio. Drilling is expected to begin at Jasper Hills before year-end, partly co-funded by a Tasmanian Government grant.

CopperCorp Resources Inc. (CPER) has announced the sale of its flagship project, a move that introduces unannounced information distinct from routine operational updates. The transaction involves divesting the Skyline/Razorback licenses, which encompass the Jukes prospect intercepts reported in December 2025 and March 2026, as well as the Marigold gold discovery announced in January 2026. In exchange, CopperCorp will receive a total consideration of A$3.0 million, structured as a combination of cash and equity.

The cash component consists of a gross tranche of A$1.0 million, approximately C$0.9 million. This amount is subject to reductions for an outstanding bridge loan of up to A$150,000 plus 10% interest and a 7% finder’s fee, leaving a net cash figure plausibly in the C$0.6 million to C$0.75 million range. The remaining A$2.0 million of the consideration is equity in a Perth-based ASX micro-cap explorer, Bubalus. This equity is illiquid, with an escrow period of nine months, and its value fluctuates with Bubalus's share price, which the release indicates is around A$0.07.

The sale comes as CopperCorp faces significant liquidity constraints. According to the H1-2026 filing, cash reserves fell to $235,809 from $1,677,866 at the end of FY-2025. Working capital stood at $189,310, and the MD&A included a going-concern flag. Management stated that additional financing is required over the next 12 months "with no assurance of success." Operating cash burn was approximately $1.43 million over six months, or roughly $0.24 million per month. The net cash received from the transaction covers only a few months to roughly one quarter of this recent burn rate, before any escrowed share value is realizable.

CopperCorp is retaining a minority, non-controlling stake and a royalty on the divested asset. The equity stake is deliberately capped at 19.95% to avoid triggering a mandatory-takeover obligation and to limit the company's ability to increase its position cheaply. The remaining portfolio includes the AMC: Alpine IOCG project, which holds only an Exploration Target, and the early-stage Jasper Hills project, both of which are less advanced and less de-risked than the sold assets.

While the transaction avoids further near-term dilution at the current share price of C$0.03–0.04 and transfers an estimated A$2.5 million exploration bill to Bubalus, it removes the asset that generated the company's most recent positive news flow. On a sum-of-parts basis, the initial consideration represents a meaningful fraction of CopperCorp's approximately C$3.6 million market cap. However, the deal shrinks the investable story and does not resolve the underlying funding gap.

CopperCorp Resources Inc. (TSXV: CPER; OTCQB: CPCPF), a pre-revenue junior explorer headquartered in Vancouver with a field office and core facility in Zeehan, Tasmania, has completed a transaction involving its flagship Skyline Copper-Gold Project. The company operates in western Tasmania, a region characterized by low sovereign risk, renewable power, and established infrastructure.

The Skyline Copper-Gold Project encompasses approximately 494 km² across five granted licences in the Mount Read Volcanics, located roughly 10 km from the Mt Lyell Cu-Au camp. The asset’s most advanced prospect, Jukes, is a drill-confirmed copper-gold system. Recent drilling results included 132.0 m @ 0.35% Cu and 0.19 g/t Au from 72 m, as well as 50.0 m @ 0.66% Cu and 0.27 g/t Au from 498 m. Additionally, the Hydes prospect returned 24 m @ 0.74% Cu and 0.36 g/t Au in surface channel sampling. Both prospects had received work-program approvals.

Following the transaction, CopperCorp’s portfolio consists of approximately 626 km² across the AMC Project. This includes the AMC (Alpine) property, which hosts a copper-cobalt-gold system in an IOCG setting. The Alpine prospect was previously drilled and features a defined Exploration Target of 15–25 Mt at 0.6–0.8% Cu. The portfolio also includes AMC (Jasper Hills), a VMS-style district with precious-metal potential, where historical assays have cited up to ~16.45% Cu. Drilling at Jasper Hills is expected before year-end, partly co-funded by a Tasmanian Government grant.

CopperCorp is led by President and CEO Stephen Swatton, who previously worked at BHP and Rio Tinto. The company’s investor deck lists CFO Rob Scott and directors Sam Garrett, Sean Westbrook, Jason Bahnsen, and Alan Coutts. Advisors include Doug Kirwin, Craig Roberts, John Robins, and Leo Hathaway. Sean Westbrook stepped down as VP Exploration in December 2025 but remained a director and technical committee member.