How to select text with mouse cursor in iTerm 2?

I want to select text in iTerm just like I can in Powershell: with mouse cursor. By holding LMB and selecting it and then - pressing backspace to delete everything I selected - entering any character or pasting to replace selected - copying it with command+c I tried shift+left arrow and shift+right arrow combinations but no luck This is my preferences (where "natural selection" must be):