Horizon Copper Corp.

Horizon Copper Corp. is a junior copper royalty and streaming company headquartered in Vancouver, Canada, operating primarily in South America. The business model is centered on becoming a preeminent copper company through a portfolio of high-quality cash-flowing and development stage assets. Portfolio composition includes 1 cash-flowing royalty, 1 cash-flowing stream, and 1 development stream. The entity's structure is differentiated by its combination of direct equity interests in development projects, a net profits interest in a producing operation, and streaming agreements. A key operational characteristic is the strategic partnership with a major shareholder, which facilitates a unique growth and financing model. This approach allows the organization to acquire and develop copper-focused assets by monetizing associated precious metal by-products through streaming transactions with its partner. The company is not directly involved in the operation of its principal assets, relying on third-party operators and its rights as an equity partner or interest holder. This model provides exposure to large-scale mining operations while mitigating direct operational and exploration risks. The value of its interests is therefore dependent on the operational and financial performance of these third-party owners and operators.

Strategic focus centers on growing the existing portfolio with an emphasis on operating or non-operating interests in high-quality copper mines. A core component of the business strategy involves leveraging a strategic partnership with its largest shareholder to partially fund new acquisitions by selling precious metal by-product streams. This approach is governed by a formal, written Investment Policy that outlines the process for achieving long-term objectives. In 2024, the enterprise enhanced its capital flexibility by establishing a new revolving credit facility, with proceeds designated for future asset acquisitions and funding development requirements. To improve market positioning, the company initiated trading on the OTCQX market in 2024, a move intended to enhance visibility and accessibility for investors in the United States. The overall objective is to build size and scale, enabling diversification and strengthening strategic partnership opportunities. Management actively reviews various transaction and acquisition opportunities, engaging consultants and advisors to analyze potential additions to the portfolio.

Executive leadership features key personnel who hold concurrent senior roles at the company's largest shareholder, creating a unique governance dynamic. The President and Chief Executive Officer, appointed in August 2022, also serves as the Chief Financial Officer of the major shareholder. Similarly, the Chairman of the Board is the President and Chief Executive Officer of the same affiliated entity. The board of directors consists of 6 members. Governance framework explicitly addresses potential conflicts of interest arising from these dual roles, with established procedures requiring conflicted directors to declare their interest and abstain from voting on relevant matters. The board's oversight is supported by an Audit Committee, whose charter outlines responsibilities for financial reporting, internal controls, and auditor oversight. The company has also adopted a Code of Business Conduct and Ethics, which is reviewed annually by the board, alongside policies covering stock trading, corporate disclosure, and whistleblower procedures. This structure ensures that while leveraging deep industry relationships, formal mechanisms are in place to manage associated governance complexities.

The organization's approach to sustainability is bifurcated, addressing both indirect and direct exposures. For its indirect exposure through non-operated interests, the company integrates environmental, social, and governance risk assessment into its investment due diligence process. This evaluation, conducted by management and the board, aims to identify projects and partners that operate in a responsible and sustainable manner, and may involve engaging third-party experts. The company monitors the public disclosures of its operating partners to stay informed of their performance. For its direct exposure, the entity's environmental footprint is minimal, with a workforce of 2 employees operating within an office environment. As a concrete measure of its commitment, the company is situated in a LEED Platinum certified building, the highest level of certification for sustainable practices. Direct operational policies include a robust office composting and recycling program. The enterprise has also established a formal Workplace Bullying and Harassment Policy to foster a respectful and professional work environment.

The corporate structure is significantly influenced by a major shareholder, Sandstorm Gold Ltd., which held an approximate 34% equity interest following transactions in 2023. This relationship is formalized through an Investor Rights Agreement executed in August 2022, granting the shareholder a right of first refusal on certain financings and rights to maintain its pro rata ownership. The company's current asset base was largely formed through a series of transactions with this key shareholder. In August 2022, the entity acquired a 30% equity interest in a development project and a 55% operating interest in an exploration project. In June 2023, it acquired a net profits interest in a producing mine. These transactions were funded through a combination of cash, share issuances, and convertible promissory notes to the major shareholder, while also creating new streaming agreements. One of the company's key development interests is held as a 30% passive ownership stake in a joint operation, with SSR Mining Inc. holding a 40% operating interest and Lidya Madencilik Sanayi ve Ticaret A.S. holding the remaining 30%, following a transaction in May 2023.