Osisko Metals has signed an agreement to acquire a 100% undivided interest in the Key Anacon claims and surrounding area in Canada from Hunter Brook Holdings.
Located within the Bathurst Mining Camp (BMC), Key Anacon is around 19km south of Bathurst town, New Brunswick, and 16km south-east of the former Brunswick #12 Mine.
The proposed acquisition comprises 45 claim units with a total surface area of 981ha and hosts around 12km of the Brunswick Horizon.
According to the Osisko, the acquired assets extend onto the adjacent and surrounding claims held by it.
Osisko Metals president and CEO Jeff Hussey said: “We are very happy to announce the purchase of the historical Key Anacon deposits as they will contribute significant resources and could become the cornerstone of Osisko Metals central concentrator multi-deposit concept in the Eastern portion of the BMC.
“Drilling is being planned and will consist of approximately 12,000m to explore the area in an attempt to increase the global historical resources and upgrade them to NI43-101 standards.”
Under the agreement, the company will have the exclusive rights to explore and develop the project in exchange for a payment of $2m in different tranches.
A day before closure of the transaction, Osisko needs to pay a sum of $1m, including $750,000 in cash and $250,000 payable in the equivalent of common shares.
A sum of $500,000 is payable in the equivalent of Osisko Metals common shares, two years after the signature of a definitive agreement.
The company needs to make a payment of a further $500,000 upon starting commercial production.