Cunningham Natural Resources Corp (CNRC), formerly known as Houston Natural Resources Corp (HNRC), has announced its acquisition of a 10% stake in Kharrouba Copper Company, Inc (KCC) with the possibility of increasing its position in the future. This investment would value KCC at approximately $60 million. KCC is a Canadian company operating copper mining and processing activities in the Kingdom of Morocco. Established in 2017, KCC is currently expanding its operations and plans to further expand over the next 12-15 months through an extensive drilling campaign to increase its reserve and resource base. The company also intends to explore cobalt as part of its exploration program, having discovered cobalt in some of its mines. KCC operates on a significant land area of approximately 78,826 acres, offering substantial potential for reserve growth. The company's operations are cost-effective and anticipate generating positive cash flows.

Leading KCC is Scott M. Hand, the Executive Chairman, with extensive mining industry experience spanning 49 years. Frank Marzoli, President of KCC, was a founder and former director of Royal Nickel Corporation, now known as Karora Resources Inc.

The demand for copper is experiencing a super cycle, driven by factors like the growing need for key metals such as copper in electric vehicle production. Copper's pivotal role in the green energy transition and its decreasing global reserves have elevated its significance in the industry. Commodity Insights predicts a deficit in the refined and concentrate copper markets by 2027. Copper exploration budgets reached a nine-year high in 2022, with major companies primarily focusing on extending the life and capacity of their existing mines through site exploration.

In addition, a mining company backed by Bill Gates, KoBold Metals, has achieved unicorn status through a recent $200 million investment. KoBold employs artificial intelligence to explore for metals like copper, lithium, and cobalt. The investment, supported by investors like Bill Gates's Breakthrough Energy Ventures, values KoBold at over $1 billion. Some of the funds will be used to develop copper reserves acquired by KoBold in Zambia. Other backers include venture capital firms Andreessen Horowitz and BOND, co-founded by Mary Meeker, as well as a division of T. Rowe Price.

 

Source: prnewswire.com

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