NewPeak Metals (NPM) has entered a binding term sheet with Emma Fairhurst and Wayne Holmstead (vendors) to acquire a substantial tenement package in Quebec and Labrador, Canada.
The acquisition includes 332 claims covering 16,100ha and encompasses uranium, REEs and scandium properties in the George River area.
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Under the deal with the vendors, NPM has agreed to pay $500,000 (A$771,153) through the issuance of 33,333,333 NewPeak Metals shares at $0.015 per share.
Additionally, a 2% net smelter royalty and a future milestone payment of $300,000 in shares or cash are included, contingent upon an exploration expenditure of $500,000.
To fund this deal and future exploration, NPM plans a capital raising initiative, comprising a rights issue and a placement, each aiming to raise $500,000 at a share price of $0.015.
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It also plans to convert existing convertible loans and outstanding management and directors’ fees into shares at the price of $0.015 per share.
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By GlobalDataUpon completion of the acquisition, expected on or prior to 31 May 2024, Emma Fairhurst, with over two decades of experience in venture and capital financial public markets, will join the NewPeak Metals board as a non-executive director.
The tenement package includes the Stewart Lake, Strange Lake, Nanuk and Crater Lake Scandium properties.
Stewart Lake, spanning 7,767ha, shows potential for uranium mineralisation, while Strange Lake, covering 1,433ha, has recorded several anomalous mineral assays despite minimal exploration.
The Nanuk and Crater Lake properties are also considered prospective for uranium, REEs and scandium.
This move marks NewPeak Metals’ strategic entry into the critical minerals sector, and the company intends to fund exploration activities with proceeds from recent asset sales and the continued divestment of its Argentina gold and Sweden tungsten assets.
Unon completion of the latest tenement package deal, NPM will conduct a detailed review of historical exploration data and create a geographic information system database.
The company’s exploration strategy includes reinterpreting geophysical data and conducting geochemical sampling, scintillometer traverses and geological mapping.
The recent divestment of Finland gold permits and New Zealand gold projects, along with the proposed capital raising and future asset sales, are set to provide NPM with immediate cash and staged payments to support exploration of these Canadian properties.
