Mineral exploration company West Mining has signed an option agreement to earn a 100% undivided interest in Blue Cove Copper Property in Newfoundland, Canada, from Dean Fraser (optionor).
The move follows the signing of a non-binding letter of intent (LOI) between the firms last month.
In accordance with the agreement, West will have the option to acquire the stake by making a $160,000 aggregate payment and issuing 1.7 million common shares to the optionor.
West Mining will also incur an aggregate exploration expenditure of $750,000 on the property.
The optionor will also retain a 3% net smelter returns royalty on the property. West, however, will have the right to purchase one-third (1%) of the net smelter returns royalty for $1m from the optionor at any time.
West Mining CEO Nicholas Houghton said: “The company is extremely pleased to announce the option agreement has been fully executed, and want to take the opportunity the convey our excitement at closing the deal. We also thank Dean Fraser for his swift and attentive response, and we look forward to the upcoming 2022 field season.”
Located at the head of Fortune Bay, in south-east Newfoundland, the Blue Cove Copper Property comprises 232 claims that cover an area of 5,800ha, striking 22km adjacent to the Terrenceville fault structure.
Over the past two years, several new targets were identified through prospecting at the property, where copper mineralisation mostly occurs in altered volcanic rocks and sediments.
The primary copper minerals are said to be chalcocite with more minor bornite and chalcopyrite.
West Mining holds a 100% stake in the 9,000ha Kena Project located near Nelson, British Columbia. This project comprises three adjoining properties Kena, Daylight and Athabasca.