The Copper to Silver Chest Upgrade is used to transform a Copper Chest, with 45 slots, to a Silver Chest, with 72 slots. Simply right click any Copper Chest with this item and it will instantly have 27 more slots of storage space.
Like all upgrades, this is used to increase the space of a chest without needing to empty and break the chest.
To see all available upgrades, check Metal Chest Upgrades.
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