Canyon Copper has signed an option agreement to acquire up to a 100% interest in 2333382 Ontario’s Munro Warden copper nickel cobalt property, 85km east of Timmins, Canada.
Under the agreement, Canyon will make a payment of $5,000, as well as offer 100,000 shares within 20 days of stock exchange approval.
The acquisition will be performed in phases, with Canyon Copper having the right to earn a 51% interest after paying $45,000 and issuing 300,000 shares by 31 December 2019.
In addition, Canyon needs to spend $500,000 on the project during the same period.
Once a 51% interest has been acquired, the company has the right to earn a 75% interest after it pays $100,000 and issues 400,000 shares, in addition to a further $1m investment in the project development before 31 December 2021.
Located 55km north of Kirkland Lake Ontario, the property comprises nine mining leases and six mineral claims totalling 717ha located in the eastern part of the Kidd-Munro assemblage of the Abitibi Greenstone Belt.
The Kidd-Munro sequence contains several mineral deposits, including the Kidd Creek volcanogenic massive sulphide deposit, the Dundonald and Alexo komatiitic nickel deposits, as well as multiple lode gold deposits.
Copper and zinc bearing sulphides have been mined at the Potter Mine and the Potter-Doal Mine, while gold and asbestos were extracted from the Croesus Mine and Munro Mine respectively.
Canyon has the right to earn a 100% interest in the project after making an investment of another $1m towards exploration before the end of 2023.
The cumulative investment in the exploration needs to be $2.5m.
Under the option agreement, 2333382 Ontario will retain a 2% net smelter return royalty (NSR) in the project once it is ready for commercial production. However, Canyon will have the right to acquire 1% of the 2% NSR for $1m.