Lion Copper and Gold, previously Quaterra Resources, has signed an agreement with Houston Minerals on the option to acquire a 100% interest in two properties in Canada.
The Chaco Bear and Ashton properties comprise 19 mineral claims in total. They cover an 80km² area within some of the most prospective areas of British Columbia (BC).
Located directly east of the Golden Triangle in Northern BC, the Chaco Bear Property is situated within the Stikine Terrane and hosted in similar rock formations as the past-producing Eskay Creek volcanogenic massive sulphide (VMS) deposit.
The Ashton Property is located near Lytton, BC, and within the Spences Bridge Group.
Lion CG CEO Travis Naugle said: “We are pleased to have added these exciting properties to our exploration pipeline. We are intrigued by initial reports from the field exploration programmes and look forward to being able to provide these results in the near future.”
Lion said that it is currently processing data of the 2021 field exploration programmes on both the Chaco Bear and Ashton properties. The exploration work was carried out by Houston Minerals.
To earn a 100% interest in the two properties, Lion will issue eight million of its common shares on closing of the transaction and make annual lease payments on the properties starting this year.
According to the letter of intent signed with Houston in 2021, Lion also agreed to incur exploration expenditures of $117,837 (C$150,000) on the Chaco Bear Property and C$50,000 on the Ashton Property before the end of last year.
It also agreed to incur exploration expenditures of at least the annual assessment’s value multiplied by 1.5 for periods after 2021.
Lion is also entailed to pay $1,178,370 (C$1.5m) for the Chaco Bear Property and $785,578 (C$1m) for the Ashton Property on or before four years from the closing of the deal.
Furthermore, Houston Minerals will receive annual advance royalty payments of $196,395 (C$250,000) on the Chaco Bear Property and $117,837 (C$150,000) on the Ashton Property, in the fourth and fifth year from the closing of the transaction.