Krait Critical Minerals has reached an agreement with Sierra Antimony to secure an exclusive option to acquire full interest in 17 contiguous unpatented federal mining claims in Humboldt County, Nevada, US.
The claims, covering around 354 acres, contain the Nevada Antimony Property, a site with a history of small-scale, high-grade antimony production in the 1920s through the 1940s.
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The agreement requires Krait to make staged cash payments totalling $75,000 as well as share issuances to Sierra Antimony.
Within 30 days of the effective date, Krait will issue 150,000 common shares, and additional shares valued at C$200,000 will be issued on each of the first and second anniversaries.
The number of shares for these payments will be determined based on the 20-day volume-weighted average trading price or the minimum allowed under Canadian Securities Exchange policies.
Upon fulfilling these conditions, Krait will acquire a full interest in the property, subject to a 2.5% net smelter return royalty in Sierra’s favour.
Krait has retained the right to reduce this royalty to 1% with a payment of $2m.
According to historical records, the property produced 30t of ore grading 50% antimony in 1927, and smaller amounts in 1941 and 1942 with grades up to 54% antimony.
Past workings include shafts, adits, open cuts and trenching along a 2.25km trend.
The site is currently not in production and lacks buildings, equipment or installed power.
Krait CEO and director Oscar Mendoza said: “The addition of this Nevada property represents another important step in expanding Krait’s footprint in the US and strengthening our exposure to critical minerals.
“With antimony playing an increasingly important role in US defence, advanced manufacturing and industrial supply chains, we believe building a diversified portfolio of prospective properties is a timely and strategic initiative.”
Krait intends to begin its review through technical and geological assessment to identify future exploration targets.
The option agreement does not require a minimum exploration spend, and all further exploration activities will be subject to technical evaluation and approvals.
The transaction is subject to regulatory conditions and compliance with Canadian Securities Exchange policies.
