World Copper Limited: Advancing US Project While Preserving Cash Position in Challenging Market

• World Copper Limited, based in Vancouver, focuses on copper exploration and development, with projects in Chile and the Zonia project in Arizona.
• Recent fundraising garnered just over C$2 million . Despite a challenging market environment and depressed share prices, the company plans to make meaningful progress.
• The 2 key projects, Escalonas and Zonia, are past their expensive drilling phases, allowing for flexibility and cost savings. Emphasis will be on Zonia due to its favorable location in the U.S. and potential returns for shareholders.
• The focus on Zonia involves desktop work, engineering studies, and potential feasibility studies, avoiding the high costs of drilling. This approach is both defensive and progressive, aiming to conserve cash while progressing projects.
• Challenges include educating investors about the copper sector, especially when gold often garners more attention. However, the increasing demand for copper in EVs and renewable energies offers opportunities for future growth.

World Copper (TSXV: WCU) is a Vancouver-based copper exploration and development company focused on advancing its Zonia copper project in Arizona while preserving cash on its Escalones project in Chile. With copper fundamentals looking strong but equity markets weak, World Copper is taking a prudent approach to advance Zonia in a capital-efficient manner while maintaining its growth potential at Escalones.

Zonia Copper Project Offers Near-Term Production Potential in Supportive US Jurisdiction

World Copper's flagship asset is the Zonia copper oxide project located in central Arizona, US. Zonia already has an existing resource of 762 million pounds of copper and covers a large land package of over 4,400 acres of privately held, patented mining claims. The site has ready access to infrastructure such as power, water, and roads.

As a past-producing brownfield site that sits on private land, Zonia offers a clear path to near-term production with low capex and operating costs compared to many greenfield projects. With permitting risk minimized and no additional metallurgical studies required, Zonia provides World Copper with an opportunity to feasibly advance the project while preserving cash.

The company plans to continue low-cost engineering and desktop studies at Zonia with the goal of completing a Preliminary Economic Assessment. Located in a supportive mining jurisdiction, Zonia is well positioned to benefit from US government initiatives aimed at securing domestic copper supply for renewable energy and electric vehicles.

Large Escalones Project in Chile Provides Longer-Term Growth Potential

In addition to Zonia, World Copper holds the sizable Escalones copper project in Chile. With over 1.5 billion pounds of copper in resources, Escalones is one of the largest undeveloped copper oxide deposits globally. The project has completed a PEA estimating C1 operating costs competitive with sulfide projects.

While Chile remains a top copper-producing nation, recent political uncertainty has cooled investment sentiment. World Copper plans to minimize expenditures at Escalones while sentiment improves. However, the project's large size, solid economics, and district potential provide shareholders with substantial long-term upside.

Together, Zonia and Escalones give World Copper shareholders exposure to both near-term US production potential and world-class development assets. The company aims to progress Zonia to production while maintaining growth options at Escalones.

Copper Market Fundamentals Support Investment Case

World Copper's strategy is well timed given positive outlooks for the copper market. Demand is expected to surge in the coming years due to decarbonization and electrification trends. Meanwhile, a lack of new mines coming online may lead to structural supply deficits. With prices potentially heading much higher, World Copper's projects stand to deliver robust economics.

The company ended Q1 2022 with a solid cash balance of around C$2.5 million following financing in late 2021. This provides a 12-month runway at current burn rates. World Copper's focus on capital-efficient engineering studies maximizes the prospects of adding value without excessive dilution.

Management Team Combines Technical Experience and Capital Markets Expertise

World Copper boasts a technically experienced management team to advance its projects led by President and CEO Nolan Peterson. Peterson is a Professional Geoscientist with over 15 years in the mineral exploration and mining sector.

The company also recently added resource investing veteran Michael Pound to the team as Vice President of Corporate Development and Investor Relations. Pound's capital markets expertise should aid in communicating World Copper's investment case to new audiences.

With copper demand growth on the horizon, World Copper Limited offers exposure to both near-term US production potential and world-class development assets in Chile. By prudently balancing progress and capital preservation, the company is positioned to create value for shareholders as the copper market improves. Investors seeking leverage to a copper bull market would do well to consider World Copper.

The Investment Thesis for World Copper

Strong Copper Fundamentals

• Demand for copper is expected to surge due to electric vehicles, renewable energy, and electrification trends. Supply is constrained with few new mines coming online. This supply/demand imbalance could lead to significantly higher copper prices.

Near-Term Production Potential

• The Zonia project could provide near-term cash flow with low capex and opex. Quickly reaching production derisks the investment timeline.

Exposure to Large-Scale Growth

• The Escalones project gives exposure to a very large copper resource that could ultimately be a company-maker asset. Provides optionality in addition to Zonia.

Capital Preservation in Weak Markets

• By focusing spending on Zonia engineering studies, the company preserves cash to get through weak equities rather than diluting shareholders.

Experienced Management

• The technical and capital markets experience of the management team reduces execution risk as projects are advanced.

copper-producing

• Projects located in both the mining-friendly US and top copper producing nation Chile provide geopolitical diversification.

World Copper offers investors copper exposure timed to benefit from coming supply deficits. The company has assets that balance near-term cash flow and world-class growth potential. Prudent spending in weak markets preserves capital while advancing projects leverage a copper bull market. The experienced team reduces execution risk. For these reasons, World Copper presents a compelling investment case.