Western Copper & Gold - Major Backers Continue Support Process to Production

• Western Copper & Gold CEO discusses recent $6M additional investment from Rio Tinto and new collaborative agreement
• Permitting process underway for Casino copper/gold project in Yukon; targeting submission by end of 2024
• Working to secure green power solutions and port access
• Have about $28M cash on hand currently to fund operations
• Strong long-term copper fundamentals expected with energy transition and electrification driving demand

Advancing Flagship Casino Project with Backing of Major Partners

Yukon-based Western Copper & Gold, developer of the large-scale Casino copper/gold project, continues methodical progress on permitting and project optimization. With backing from major mining companies Rio Tinto and Mitsubishi Materials, Western Copper looks positioned to capitalize on anticipated growth in copper demand driven by the global energy transition.

Interview with President & CEO, Paul West-Sells

Recent Investments Validate Project Potential

In a recent interview, Western Copper President and CEO Paul West-Sells discussed the company’s latest developments, including an additional $6 million investment from Rio Tinto in December 2023. This takes Rio Tinto’s total investment in Western Copper to just under 10%. West-Sells said Rio Tinto’s willingness to increase its stake demonstrates its confidence in the project after extensive due diligence over several years:

“Rio Tinto did a whole bunch of diligence and then they made their initial investment. Then they did another two and a half years inside the tent, and then they invested another $6 million - they understand the project, they've signed off on the project.”

In addition to Rio Tinto, Mitsubishi Materials owns just under 5% of Western Copper. West-Sells emphasized that having 2 major mining companies validate the Casino project technically helps derisk it in the eyes of investors.

Permitting On Track for Submission in 2024

With its major partners on board, Western Copper is now focused on advancing the permitting process for Casino. According to West-Sells, the company remains on track to submit its main permitting application before the end of 2024:

“We think that we can get that submitted around the end of this year. Then we're into the process and once we're in, it's 3 years to get through it."

The submission of the permitting application will mark a major milestone for Casino. Though the final approval will still take several years, the project will be significantly derisked from an investor perspective once Western Copper enters the defined permitting process.

Collaborating with Partners on Key Issues

In tandem with permitting, Western Copper & Gold is collaborating closely with Rio Tinto on issues like securing green power solutions for the mine and improving the project’s economics. As West-Sells explained:

“Where this collaborative agreement is exciting for me is that when we talked to [Rio Tinto]...we said look, I can go to Ottawa and push this really hard, but what's really powerful is if Rio Tinto is standing next to me while I'm making these arguments.”

Having the political and financial backing of a major like Rio Tinto could be crucial in ensuring Casino gets connected to green power solutions. The Yukon government is already working to link its grid with British Columbia’s to meet its own power needs and support future industrial projects. Federal funding to advance this interconnection project is expected in mid-2024.

With copper demand set to surge in coming years, bringing renewable power to Casino will be important for producing truly “green copper” from the mine, aligned with the sustainability priorities of Western Copper, Rio Tinto and end consumers.

Funding Casino Development

Between its cash balance and funding from its major partners, Western Copper & Gold currently appears to have sufficient capital to reach the next major milestones in the Casino project’s development, although will need to top up its cash position before the end of the permitting process.

As of early 2024, the company held around $28 million in cash reserves. While advancing the permitting application over the next 2 years will require further investment, West-Sells emphasized the need to be prudent with spending during the current uncertain market conditions. And with Rio Tinto and Mitsubishi actively engaged in the project, Western Copper & Gold can look to secure additional financing from them as needed moving forward. Their investments to date significantly de-risk Casino, which could also help attract new investors as development continues.

Upside for Investors if Permitting Succeeds

For investors, Western Copper offers leveraged exposure to copper through one of the very few advanced new projects globally. In West-Sell’s view, Casino’s economics and size position it to drive substantial gains for shareholders if permitting is secured over the next several years:

“If we get this project permitted...we should be trading at a significant premium to where we are right now.”

Though the permitting process means waiting through an extended timeline, the long-term upside remains strong. Rio Tinto’s willingness to slowly increase its stake also signals confidence not just in the project’s technical merits but also in Western Copper & Gold's capacity to steer Casino through approvals. As the energy transition accelerates and copper demand outpaces languishing supply growth over the next decade, projects like Casino and companies like Western Copper & Gold stand ready to deliver the next generation of global copper production. Amid market volatility, Casino offers a unique copper exposure for patient investors.

The Investment Thesis for Western Copper & Gold

• Major partners Rio Tinto and Mitsubishi validate Casino project quality and de-risk investment
• Approaching key milestone of submitting permitting application in 2024
• Collaborating closely with partners on project optimizations, power solutions, and other key issues
• $28M cash balance funds operations near term; partners provide additional financing capacity
• Successful permitting would significantly re-rate Western Copper given the anticipated copper supply shortfall
• Leveraged exposure to long-term growth in copper demand from electrification and energy transition
• Strong project economics make Casino a rare, large-scale new copper development opportunity
• Rio Tinto's incremental investments signal long-term confidence in Casino and Western's execution ability
• 8+ year investment horizon needed in line with permitting, but upside potential substantial

Backed by extensive due diligence and early investment from two major mining companies Rio Tinto and Mitsubishi Materials, Western Copper & Gold's Casino project in Canada's Yukon stands out as one of the world's premier new copper development opportunities. With permitting progressing steadily and developer Western Copper funded through upcoming milestones, Casino is positioned to help supply the next generation of global copper demand as electrification drives prices higher. Though the lengthy permitting timeline requires patient capital, successful approvals for Casino could translate into substantial returns for investors in Western Copper. For risk-tolerant copper bulls, the company offers a unique vehicle to capitalize on the coming copper supply shortfall.