NorthWest Copper - Developing a Large-Scale, Affordable Copper Mine in British Columbia's Golden Triangle

• NorthWest Copper aims to construct a copper project with significant scale and production while maintaining manageable capital costs.
• The merger of Serengeti Resources and Sun Metals resulted in NorthWest Copper. This combined the high-grade mineralization of Sun Metals' Stardust project with the larger scale of Serengeti's Quinica deposit, leading to a more attractive project overall.
• The company is focusing on high-grade portions of the deposits to maximize project economics rather than just expanding deposit size.

About NorthWest Copper

Northwest Copper is a copper developer aiming to build an economically viable, large-scale copper mine in British Columbia's prolific Golden Triangle mining region. Led by an experienced management team, the company is focused on advancing its two main assets - the high-grade Stardust project and the large-scale Kwanika project - towards production in the coming years.

With copper demand growing rapidly amid the global energy transition and strained supply, Northwest Copper offers a compelling value proposition to investors looking for leverage to higher copper prices. The company's strategy of combining high grades and meaningful scale should allow it to develop a project without reliance on external funding from major mining companies. Additionally, the project's strong gold by-product credits improve margins and could attract interest from gold producers.

Experienced Management Team Primed for Success

CEO Peter Bell has over 16 years of experience spanning technical and capital market roles in the mining industry. This includes evaluating projects with Newmont and managing a mining-focused hedge fund at Polygon Capital in London. Prior to joining Northwest Copper, Bell worked in investment banking focused on raising capital for mining companies. His diverse expertise across the entire mining value chain enables a broad understanding of what it takes to create shareholder value.

Under Bell's leadership, the rest of the management team also boasts valuable industry experience. This includes VP of Sustainability Chuck Phillip, who came from a tech background and is focused on building partnerships with indigenous communities - a crucial aspect of permitting in British Columbia. The company also has close involvement from explorers and project builders like Mark O’Dea of the Oxygen Capital Group.

Strategic Asset Combination to Unlock Value

In March 2021, Northwest Copper was created through the merger of two exploration companies - Sun Metals and Serengeti Resources. By combining Sun Metals' high-grade Stardust project and Serengeti's large-scale Kwanika project into one entity, Northwest Copper has positioned itself to develop a uniquely scaled project in the copper developer space.

Many copper development projects are either too small for major miners or too large for junior developers to finance and build. At the same time, copper producers are very selective about acquiring projects. Northwest Copper aims to fill a niche by building a mine substantial enough to get attention but focused only on the best high-grade areas. This should result in strong margins without excessive capex.

Stardust Brings High-Grade Upside

The Stardust project is a high-grade massive sulphide deposit with an average grade of 2% copper equivalent. The high grades help boost overall project economics, but Stardust alone would only support a relatively small-scale operation. Based just 7km away from Kwanika, Stardust can provide high-grade feed to contribute to a larger mine plan.

Recent drilling has encountered grades above the existing block model, showing further upside. Ongoing results will look to expand the defined high-grade portion to drive project optimization.

Large-Scale Potential at Kwanika

In contrast to Stardust, the Kwanika project offers substantial scale with over 224 million tonnes in measured and indicated resources. After assessing the deposit, Northwest Copper has identified a high-grade subset within Kwanika representing about one-third of total tonnes.

Recent drilling has successfully expanded the footprint of high-grade mineralization near the surface. With about 7,000m of drilling contributing to an updated resource estimate in early 2022, Kwanika's high-grade potential will become clearer. The company expects the integrated Stardust-Kwanika project could support a 15,000 tonne per day mill comparable to an operation like Copper Mountain.

Excellent Infrastructure to Support Development

Located at relatively low elevations with access to power, roads and other infrastructure, the projects benefit substantially from the Golden Triangle's mature mining environment. The industrialized area should help facilitate permitting and construction. The projects are also close to the regional population center of Smithers, providing a local workforce.

Additional Upside from Early-Stage EastNiv Project

While Stardust and Kwanika form the core assets, Northwest Copper also has exposure to exploration upside at its 100% owned EastNiv project. After compiling historical data, the company has now begun drilling at this underexplored property near infrastructure. EastNiv provides optionality for new discoveries in a proven copper region.

Strong Financial Position

In Q3 2021, Northwest Copper had around $12 million in cash following its creation via merger earlier in the year. With a modest spending rate projected over the coming year, the company has sufficient capital to reach its next major milestone - a Preliminary Economic Assessment expected in Q1 2022. This should allow for project optimization and demonstrate the ultimate scalability.

The Oxygen Capital Group has been an early supporter, owning around 20% of shares. Meanwhile, the team is also focused on attracting new institutional investors as they conduct due diligence on the story. With copper and gold both seeing positive fundamentals, having a strong cash position and supportive backers puts Northwest Copper in an enviable position.

Partnerships & Sustainability Key to Success

Northwest Copper operates on the traditional territories of indigenous groups like the Tahltan Nation. Forming positive partnerships based on open communication and mutually beneficial agreements is therefore integral. The company has emphasized engagement and continues to work proactively toward securing a social license to operate in the region.

At the same time, Northwest Copper also has an opportunity to showcase sustainability initiatives like carbon-neutral mining. Especially in British Columbia, having a clear sustainability and ESG strategy aligned with local community priorities can give an important edge.

Investment Thesis

With copper remaining in structural deficit going forward, Northwest Copper offers torque to higher prices as it systematically advances assets toward production. The company's copper grades comfortably exceed global averages, and existing infrastructure provides advantages over many emerging copper regions.

In contrast to exploration plays or purely speculative development projects, Northwest Copper's defined scale also gives it a tangible upside. Though not without risks, the company has taken critical de-risking steps that set it apart from peers - from drilling to grow resources to proactively building local community relations.

Trading at an enterprise value under US$50 million, Northwest Copper presents an opportunity for considerable re-rating as it hits key milestones over the next 12-18 months. For investors who believe the copper bull thesis still has room to run, Northwest Copper provides concentrated leverage with the potential to generate strong shareholder returns.

Why Northwest Copper Could Represent a Good Investment

Leverage to Copper Price Upside

With copper in a structural supply deficit amid booming demand from electrification, Northwest Copper offers pure exposure to higher copper prices as it advances assets toward production. The company's grades are substantially above global averages, providing leverage and a margin of safety if prices retreat.

Right Scale to De-Risk Financing Needs

By optimizing for grade and focusing only on the best areas, Northwest Copper's integrated project aims for a scale that should be financeable based on cash flow while still being significant enough to attract takeover interest. This reduces dilution risk relative to many larger copper projects.

Exploration Upside in a Prolific Region

Beyond its core project, Northwest Copper has additional exploration upside at its early-stage East Niv project in BC's productive Golden Triangle district. This provides investors with the potential to realize value from new discoveries in a copper-rich region with infrastructure.

Strong Backing from Renowned Explorers

With support from highly respected project builders like the Oxygen Capital Group, Northwest Copper benefits from technical and capital markets expertise to navigate the development process. The involvement of experienced operators reduces execution risk.

Milestones Could Re-Rate Valuation

Trading at an enterprise value below $50M, Northwest Copper has room for substantial re-rating as it hits milestones like an updated resource and economic study over the next year. The current valuation does not reflect the company's potential if the execution goes to plan.

Northwest Copper gives investors leveraged exposure to copper at a valuation disconnect with fair value if the company continues delivering on its strategic plan. For investors bullish on the copper narrative, Northwest Copper is positioned attractively.