Canadian firm Canterra Minerals has finalised the acquisition of four resource staged projects in central Newfoundland, Canada, from NorZinc.
The projects acquired include the South Tally Pond / Lemarchant Project, the Tulks South Project, the Victoria Mine, and the Long Lake Project.
NorZinc divested the assets to Canterra for $2,237,500, which includes $250,000 in cash and 6,625,000 common Canterra shares at $0.30 apiece.
NorZinc CEO Rohan Hazelton said: “The sale of our Newfoundland mineral properties strengthens our balance sheet and allows us to invest further in our flagship asset, Prairie Creek, a high-grade zinc-silver-lead project in the Northwest Territories, Canada.”
With the transaction, the total property position of Canterra in the central Newfoundland gold belt is around 352km².
Canterra CEO and president Chris Pennimpede said that the four assets will bolster the firm’s mineral rights position in the central Newfoundland corridor while providing further opportunity to make a major discovery in the belt.
Pennimpede commented: “As the age-old industry saying goes, ‘the best place to look for deposits/mines is next to deposits/mines’; Canterra will now be positioned next to Marathon’s Valentine Lake Deposits, Teck’s Duck Pond Mine and will have a suite of deposits with significant exploration upside.
“With $4.0M in cash, and a 352km² land position covering mineral rights encompassing existing deposits, we expect to be well-positioned to make the next mineral discovery in central Newfoundland.”
Located directly north of Canterra’s Wilding Property, the South Tally Pond property comprises the Lemarchant deposit, a VMS deposit within a 700m-wide sequence of altered volcanic rocks.
The Tulks South project, which is situated 48km west of the Duck Pond Mill complex, comprises mineral licences and a 76km² mining lease.
Covering an area of 40km², the Long Lake project is underlain by the volcanic Tulks Hill Group. It also contains the Long Lake ‘Main Zone’ VMS deposit.
The Victoria Mine property comprises a copper mine, which was operated around the turn of the 19th century.