Canadian miner Mineral Road Discovery has signed an agreement to acquire licences for the Wheeler and Bergeron properties in the Labrador Trough area of Quebec, Canada, from Mineral Road Capital Partners and Wayne Holmstead.
The deal involves issuing 7.5 million common shares at $0.08 each to Mineral Road Capital Partners and Wayne Holmstead, a consultant and qualified person for the project.
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The Wheeler property, with no modern exploration, has historical data from the 1960s indicating the presence of copper and nickel, among other elements. The Bergeron property, with a history dating back to the 1940s, has shown potential for uranium.
The properties, prospective for various minerals including copper, nickel and uranium, are under a 2% net smelter return (NSR), with a buyback clause for half the NSR at $1m (C$1.41m).
Mineral Road Discovery plans to compile data over the winter and start fieldwork in 2025. The company aims to map and sample historical uranium showings and explore new prospects on the Bergeron property.
The acquisition is deemed a related party transaction but falls below the 25% market capitalisation threshold, exempting it from certain regulatory requirements.
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By GlobalDataEmma Fairhurst, chairperson and director, and Damien Reynolds, director of Mineral Road Partners, are acknowledged as related parties due to their 56.34% holdings in the company.
The acquisition awaits approval from the Canadian Securities Exchange (CSE) and the issued shares will be held for four months as per securities regulations.
Earlier, this month, Mineral Road Discovery agreed to acquire 2.5 million Golcap Resources shares for $500,000 by issuing 6.25 million Mineral Road shares at $0.08, pending CSE approval.
