Aguila Copper has closed the acquisition of a 90% interest in various copper-zinc-gold resources in Manitoba, Canada, from Halo Resources.
The transaction includes 28 mining claims and one mineral lease that covers the Sherridon Mining District, a notable historic mining area in central-western Manitoba.
According to the option agreement signed in December 2021, Aguila has to make a C$15,000 cash payment to Halo Resources upon completion of due diligence.
Aguila also agreed to issue its 100,000 fully paid shares within six months of the closing of the transaction and incur C$100,000 in exploration expenditures before the first anniversary of the deal closing.
Furthermore, Aguila will earn an 80% interest in the property by incurring an additional exploration expenditure of C$900,000 by the fourth anniversary.
To earn an additional 10% stake in the property, the firm will incur a further C$1m in exploration expenditures by the seventh anniversary.
Upon exercise of the option, a joint venture will be formed between Halo and Aguila to advance the property.
Aguila Copper CEO Mark Saxon said: “Acquisition of the Sherridon mining district has greatly exceeded the goals and expectations of our project generation efforts.
“With substantial historic mining, four near-surface resources, and targets for immediate follow-up, the project is a flagship asset that places Aguila at the forefront of North American copper exploration.
“VHMS style deposits are one of the largest producers of copper, zinc and gold globally, and we are well placed to apply 2020’s understanding and technology to an overlooked yet data-rich asset.”