Canada-based mining exploration firm Allied Copper has entered an agreement to acquire the Stateline Property in Colorado and Utah, US.

The deal provides Allied Copper with exclusive rights to buy a 100% undivided legal and beneficial interest in the property from Cloudbreak Discovery Canada and Alianza Minerals.

During a three-year period, Allied will make a $248,336 (C$315,000) aggregate cash payment to Cloudbreak and Alianza.

The firm will also incur $2.99m (C$3.8m) in exploration costs on the property and issue 4.3 million shares over a period of three years.

Cloudbreak and Alianza, however, will retain a 2% net smelter royalty on the property.

Allied Copper executive chairman Warner Uhl said: “The Stateline, Silver King (SK) and Klondike Properties all have the potential to become strategically located producing copper mines in a tier-one jurisdiction.

“Our focus now turns to an extensive exploration campaign across the portfolio of assets being conducted in Q2 and Q3 of 2022. Lisbon Valley Copper has the capacity to produce 54 million pounds of annual copper production.”

The Stateline Property comprises 22 unpatented mining claims that cover a total area of 148ha in San Miguel County, Colorado, and San Juan County, Utah.

The project is situated within the Paradox Copper Belt, which comprise the producing Lisbon Valley Mining Complex.

Alianza President and CEO Jason Weber said: “We are delighted to grow our relationship with Allied and are looking forward to supporting their exploration efforts in the Paradox Basin. Having both Stateline and Klondike with the same partner allows us to better understand the geology and mineralisation within the Paradox Basin and explore the regional opportunity within it.”