COPPER INTELLIGENCE TO FORM AN EARLY-STAGE EXPLORATION JOINT VENTURE WITH COTEC TO TARGET PROCESSING HISTORICAL COPPER TAILINGS OPPORTUNITIES IN THE DEMOCRATIC REPUBLIC OF CONGO

Rhea-AI Summary

Copper Intelligence (OTC: AFDG) signed a term sheet with CoTec and a third-party investment vehicle tied to its CEO and chairman to form an early-stage exploration joint venture targeting processing of historical copper tailings in the Democratic Republic of Congo (DRC).

The non-binding JV will use CoTec technologies, pursue asset-by-asset legal and technical due diligence, seek independent CoTec board approvals, and target U.S. International Development Finance Corporation funding once scale is achieved.

Positive

• Signed term sheet to form a joint venture targeting DRC copper tailings
• JV aims to bring non-dilutive capital to shareholders
• Plans to deploy CoTec technologies to enhance tailings economics
• Targeting funding from the U.S. International Development Finance Corporation

Negative

• Term sheet is non-binding; definitive agreements not yet executed
• Opportunities subject to legal and technical due diligence before commitment
• Third-party investment vehicle is associated with the company's CEO and chairman, requiring disclosure and governance safeguards

Market Reality Check

Price: $0.0280 Vol: Volume 213,500 is 1.1x th...

normal vol

$0.0280 Last Close

Volume Volume 213,500 is 1.1x the 20-day average of 193,234, indicating modestly elevated interest ahead of the JV. normal

Technical Price at 0.028 remains slightly below the 200-day MA of 0.03, despite the partnership-driven bounce.

Peers on Argus

AFDG is up 12% while key peers are mixed: AXXA up 10%, KYNC down 20%, others fla...

AFDG is up 12% while key peers are mixed: AXXA up 10%, KYNC down 20%, others flat. Moves do not cluster, suggesting stock-specific reaction to the DRC tailings JV.

Historical Context

5 past events · Latest: Apr 29 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Apr 29	Asset acquisition	Positive	+11.0%	Confirmed acquisition of Kitungu copper exploration licence with historical high-grade data.
Mar 03	Operational update	Positive	+3.6%	Announced transport and planned mobilization of XY–44 drill rig to Butembo project.
Feb 26	Investor presentation	Positive	-11.7%	Emerging Growth Conference investor update with live presentation and Q&A.
Feb 06	SPA and rebranding	Positive	+0.0%	Definitive SPA for Butembo copper asset and rebranding to Copper Intelligence.
Jan 15	Merger approval	Positive	+11.7%	Shareholder approval of merger to acquire Butembo copper exploration license.

Pattern Detected

AFDG often shows positive price reactions to DRC asset and project development news, with one notable divergence on an investor presentation.

Recent Company History

Over the last few months, AFDG has consistently focused on building a dedicated DRC copper platform. Shareholder approval of the Butembo merger on Jan 15, 2026 and the subsequent SPA and name change on Feb 6, 2026 created Copper Intelligence. Logistics updates for the Butembo drill rig and the Kitungu licence acquisition on Apr 29, 2026 further expanded its exploration pipeline. Today’s joint venture term sheet around historical tailings fits this pattern of adding DRC copper exposure.

Market Pulse Summary

This announcement outlines a non-binding term sheet for an early-stage joint venture with CoTec to p...

Analysis

This announcement outlines a non-binding term sheet for an early-stage joint venture with CoTec to process historical copper tailings in the DRC. It extends Copper Intelligence’s DRC-focused copper strategy beyond primary deposits into tailings reprocessing, leveraging CoTec technologies and potential U.S. Development Finance Corporation funding. Investors may track progress from term sheet to definitive agreements, due diligence outcomes on specific tailings assets, and how this complements prior Butembo and Kitungu project milestones.

Key Terms

joint venture, term sheet, tailings

3 terms

joint venture technical

"to form an early stage exploration joint venture ("Joint Venture") that will be focused"

A joint venture is when two or more companies team up to work on a specific project or business idea, sharing both the risks and the rewards. It’s like friends starting a lemonade stand together—each contributes resources and they split the profits, making it easier to succeed than going alone.

term sheet financial

"is pleased to announce that it has signed a term sheet with CoTec Holdings Corp."

A term sheet is a short, non-binding summary of the main points agreed between parties before a formal investment, loan, or acquisition is completed. Think of it as a blueprint that lists price, ownership split, key rights and conditions, and timelines so everyone knows the deal’s structure before lawyers draft final contracts. Investors care because it signals the likely economic terms, risks, and protections they will get and can make or break whether a transaction proceeds.

tailings technical

"focused on processing historical copper tailings in the Democratic Republic of Congo"

Tailings are the leftover rock, water and fine particles produced when ore is crushed and processed to extract metals or minerals. Think of them as the muddy residue from a kitchen filtering process: they are stored in ponds or engineered dams and can carry chemical contaminants, so they matter to investors because they represent ongoing cleanup costs, regulatory liabilities and operational risks that can affect a mining company’s finances and reputation.

AI-generated analysis. Not financial advice.

NEW YORK, May 6, 2026 /PRNewswire/ -- Copper Intelligence Inc. (OTC: AFDG ), formerly African Discovery Group, is pleased to announce that it has signed a term sheet with CoTec Holdings Corp. (TSXV: CTH; OTCQB: CTHCF) ("CoTec" or the "Company") and a third-party investment vehicle associated with the Company's CEO, Julian Treger, and Chairman, Lucio Genovese, to form an early stage exploration joint venture ("Joint Venture") that will be focused on processing historical copper tailings in the Democratic Republic of Congo (the "DRC").

Andrew Groves, Chairman of Copper Intelligence, stated, "We are excited to pursue a strategic partnership with the CoTec team that will add capital in a non- dilutive fashion to our shareholders. We look forward to a strong and profitable relationship with a team that has a track record of success in Africa for many decades."

Copper tailings in the DRC are a defining feature of the DRC's long mining history, particularly in the Central African Copperbelt, one of the world's richest copper and cobalt provinces. Large volumes of tailings have been generated by the state-owned company Gécamines during industrial mining since the 1950s.

Once formed, the Joint Venture will establish a framework for pursuing copper-tailings opportunities in the DRC's historical copper districts. Opportunities identified will be subject to detailed legal and technical due diligence and binding agreements on an asset-by-asset basis with approval by the independent members of the CoTec Board of Directors in this matter, prior to resources being committed to development.

CoTec technologies will be used to further enhance the economic potential of these historical tailings sites and redundant copper deposits. The Joint Venture will target funding from the U.S. International Development Finance Corporation once sufficient scale is achieved. Copper Intelligence is the first stand-alone DRC company to be publicly traded in the United States.

The term sheet is non-binding and the specific structure, terms and conditions of the Joint Venture will be reflected in mutually acceptable definitive agreements.

About Copper Intelligence

Copper Intelligence is a resource development company focused on copper exploration and project advancement in the Democratic Republic of Congo, including the Butembo copper project. The company maintains a focus on responsible development and community engagement in the regions where it operates. Copper Intelligence is proud to be the first stand-alone DRC company to be publicly traded in the United States.

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View original content:https://www.prnewswire.com/news-releases/copper-intelligence-to-form-an-early-stage-exploration-joint-venture-with-cotec-to-target-processing-historical-copper-tailings-opportunities-in-the-democratic-republic-of-congo-302764233.html

SOURCE Copper Intelligence Inc.

FAQ

What did Copper Intelligence (AFDG) announce on May 6, 2026 about a joint venture in the DRC?

They signed a non-binding term sheet to form an early-stage JV with CoTec and an investment vehicle tied to company executives. According to the company, the JV will target processing historical copper tailings in the DRC with CoTec technologies.

How will the AFDG–CoTec joint venture be funded and structured?

The term sheet contemplates non-dilutive capital from partners and investor vehicles tied to executives. According to the company, definitive JV structure, terms, and funding will be set in mutually acceptable agreements after due diligence.

What approvals and steps are required before Copper Intelligence (AFDG) can develop DRC tailings projects?

Each opportunity requires asset-by-asset legal and technical due diligence and independent CoTec board approvals. According to the company, binding agreements and final approvals are needed before resources are committed.

Will Copper Intelligence (AFDG) use specific technologies to process the historical tailings?

Yes — the JV will deploy CoTec technologies to enhance economic potential of tailings and redundant deposits. According to the company, these technologies are expected to improve recovery and project viability.

Does the AFDG announcement mention potential external financing sources for the JV?

The company said the JV will target funding from the U.S. International Development Finance Corporation once sufficient scale is achieved. This would be pursued after establishing project scale and approvals.