Enduro Metals has completed the option to acquire a 100% stake in the Newmont Lake copper-gold project in British Columbia, Canada, from Romios Gold Resources.
According to the letter agreement signed with Romios in September 2018, Enduro Metals agreed to earn the remaining 436km² of the 653km² Newmont Lake Project in northwestern British Columbia’s Golden Triangle.
The deal required Enduro Metals to complete $6.3m (C$8m) in exploration expenditures over three years; making cash payments of $1.5m (C$2m) to Romios in trenches; and issuance of 12 million of Enduro shares.
This makes Enduro one of the largest landholders in the district.
Romios Gold Resources, however, retains a 2% net smelter return royalty (NSR) in any future production from the 436km² optioned claim package.
Enduro has completed the final milestones required to earn a 100% interest in the project, which included the delivery of written notice to exercise the earn-in option and signing the net smelter return agreement. It also included making a $1m final payment.
Enduro president and CEO Cole Evans said: “Achieving this major milestone is particularly pleasing given the significant amount and time, resources, and dedication we have put into this project so far. With the option agreement now behind us, we can focus on our 2022 exploration program.”
The Newmont Lake property is situated between the former Eskay Creek mine and the Galore Creek copper-gold project.
Based on prior results, Enduro has outlined four deposit environments of interest across the Newmont Lake Project.
These include high-grade epithermal/skarn gold along the McLymont Fault; high-grade epithermal/skarn silver/zinc at Cuba; copper-gold alkalic porphyry mineralisation at Burgundy; and a large geochemical anomaly hosting various gold, silver, copper, zinc, nickel, cobalt, and lead mineralisation along the newly discovered Chachi Corridor.