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H.C. Wainwright lowered its price target on Western Copper and Gold (NYSE:WRN) stock to $4.00 from $4.25 on Wednesday, while maintaining a Buy rating on the shares. The stock, currently trading at $1.34, has shown strong momentum with a 31% return over the past six months and maintains a healthy balance sheet with more cash than debt.
The research firm cited revisions to the agreement between Western Copper and Gold and Rio Tinto (NYSE:RIO), noting that Rio Tinto’s potential board seat and board observer rights have been canceled following this revision.
Despite these changes, Rio Tinto maintains its standstill and trading restrictions, along with its seat on the Casino (EPA:CASP) Project’s Technical and Sustainability Committee, which should allow for ongoing collaboration between the companies.
The revised Investor Rights Agreement is now scheduled to expire on November 30, 2026, or when Rio Tinto’s ownership falls below 5%, according to H.C. Wainwright.
The research firm expressed that Rio Tinto’s continued interest and support of the Casino project reaffirms their confidence in the longer-term potential of the asset, supporting their decision to maintain a Buy rating despite the price target reduction.
In other recent news, Western Copper and Gold Corporation has extended its investor rights agreement with Mitsubishi Materials Corporation, strengthening their strategic partnership. This extension, valid until May 30, 2026, requires Mitsubishi Materials to purchase an additional 2 million common shares of Western Copper, boosting its stake back to approximately 5%. The acquisition will not dilute current shareholders’ interests, as no new shares will be issued. In a related development, H.C. Wainwright has maintained its Buy rating for Western Copper and Gold, with a price target of $4.25. This endorsement follows the company’s progress on infrastructure initiatives crucial for its Casino Copper-Gold Project. Notably, the project received conditional approval for $40 million in funding from Natural Resources Canada for a high-voltage transmission energy corridor. This development is significant as it will connect the Yukon grid with the North American grid, addressing the project’s substantial power requirements. The Yukon Development Corporation’s commitment to funding further underscores the regional support for the Casino Project.
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