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Wealth Minerals (WML) has agreed to acquire the Ignace Rare Earth Elements (REE) Property in the Thunder Bay Mining Division, Ontario, Canada, from Storex Capital Investments, an arm’s length private British Columbia corporation.

According to the assignment and assumption agreement, Wealth Minerals will issue a total of 4.2 million of its common shares over a two-year period to Storex Capital. The shares are planned to be issued for $0.27 per share.

To acquire a 100% stake in the property, Wealth Minerals will also make total remaining payments of $87,000 to Storex Capital.

Furthermore, during the option period, Wealth Minerals will be responsible for the costs of all exploration work and activities. There are no minimum exploration commitments.

Once Wealth Minerals exercises the option, the underlying property owner will retain a 1.5% net smelter returns royalty.

Wealth Minerals said in a statement: “In all payments in respect of the option are optional. However, if the company fails to fulfil its obligations, the Option will terminate, and the company will not retain any interest in the property.”

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The assignment is subject to certain conditions, including due diligence completion, corporate approvals and the TSX Venture Exchange’s approval.

Located 65km east of Ignace, Ontario, the Ignace REE property comprises two claim groups that are contained within the Winnipeg River Terrance.

The property’s east claim group include 131 cells measuring approximately 2,600ha and the west claim group comprises 70 cells measuring approximately 1,400ha.