Pacific Copper Corp. company history: the story so far

History

Pacific Copper built a Chilean and Peruvian copper exploration portfolio through share-based deals, many with related parties, but the record shows no reported drilling results or confirmed closings.

2007-2008: Building a portfolio

Pacific Copper set out to explore for copper. In April 2007 it signed agreements to buy two companies yet to be formed: one holding Peruvian claims for 4,850,000 shares and one holding Chilean claims for 6,150,000 shares. It paid $25,000 toward each formation. The filing described the claims as early stage and not significant to the business at that date. Earlier, in March 2007, the company had sold 2 million shares at $0.10, raising US$200,000 to fund exploration on its Mazama claims.

In August 2007 the company signed a two-year management services agreement with Kriyah Consultants, run by President and CEO Andrew Brodkey. Kriyah received $57,503.77 upfront, $4,000 a month and 1,000,000 warrants (rights to buy shares) at $0.60. The company also guaranteed Kriyah's Tucson office lease, with maximum exposure of $394,593.92. The Peru and Chile deals were amended, with closing pushed to no later than November 2007.

In 2008 the company turned to more Chilean copper oxide properties through letters of intent, which are not completed purchases. In July it agreed terms for Venado and El Corral, and in September for Yerbas Buenas, whose vendor was partly owned by a director. Each property was priced at 2 million shares plus a 2% royalty capped at US$6 million.

2009-2010: San Enrique

The record is quiet for 2009 apart from a June agreement to buy the San Enrique property in Chile from Gareste, half-owned by director Harold Gardner. In March 2010 the company amended it. The deal added 160 hectares plus applications for about 2,000 more, closing moved to June 30, 2010, and 7 million shares went into escrow. Gareste could take the property back if the company did not raise a net US$1.6 million within six months or spend US$1 million within 18 months.

As of March 2010, the beats do not confirm that the letter-of-intent purchases closed, and no drilling results had been reported. Shares on issue were 49,861,600 at the end of 2010.

Written from the 5 story beats below (2007 to 1 Mar 2010), which come from the company's own announcements and filings.

Beat by beat

The events that changed the company's story, in plain English, each written against everything known about the company at the time. The dot shows whether it was good, bad or neutral for shareholders.

2010

1 Mar
Pacific Copper amended its June 2009 agreement to buy the San Enrique property in Chile from Gareste, which is half-owned by director Harold Gardner. The deal now adds 160 hectares plus applications for about 2,000 more, closing is pushed to June 30, 2010, and 7 million shares go into escrow. Gareste gets a right to take the property back if the company does not raise a net US$1.6 million within six months or spend US$1 million on the property and overhead within 18 months.
material agreement

2008

29 Sept
Pacific Copper signed a letter of intent to acquire the Yerbas Buenas copper oxide property in Chile, about 20 km from El Corral, for 2 million shares and a 2% royalty capped at US$6 million. The vendor is a Chilean entity partly owned by a company director, making this a related-party deal; drilling is planned through 2009. It is still only a letter of intent.
drilling progress report
11 July
Pacific Copper, through its Chilean subsidiary, signed a letter of intent with one vendor to buy 100% of the Venado and El Corral copper oxide properties near Copiapo, Chile. The vendor would get 2 million shares for each property plus a 2% royalty capped at US$6 million (half repurchasable for US$2 million). The company plans drilling at both through the end of 2008; this is a letter of intent, not a completed purchase, and adds to the Chile exploration thread.
drilling progress report

2007

24 Aug
Pacific Copper signed a two-year management services agreement with Kriyah Consultants LLC, run by Andrew Brodkey, who is also the company's President and CEO. Kriyah got $57,503.77 upfront, gets $4,000 a month, and received 1,000,000 warrants at $0.60 expiring August 22, 2012; the company also guaranteed Kriyah's Tucson office lease, with maximum exposure of $394,593.92. Separately, the Peru and Chile share exchange deals were amended to reflect the formation of the Peruvian and Chilean entities, with closing pushed to no later than November 2007 rather than the earlier June target.
material agreement
25 Apr
Pacific Copper signed agreements to buy two companies still to be formed, one holding Peruvian mineral claims (for 4,850,000 shares) and one holding Chilean claims (for 6,150,000 shares), with closing expected around June 11, 2007, and paid $25,000 toward each formation. The filing says the claims are at an early exploration stage and the company does not consider them significant to its business at this date; if the Chile deal closes, Harold Gardner would become a director and CEO/COO, and David Hackman and Eduardo Esteffan would join the board if the Peru deal closes.
material agreement