Nine Mile Metals Ltd. has announced that it has entered into an agreement with Prospect Or Corp to purchase an additional 10.78 square kilometers and 49 claim units adjacent to its California Lake and Nine Mile Brook VMS Projects in Bathurst Mining Camp, New Brunswick, dated August 31st, 2023. This purchase cements the complete targeted trends discovered last season, allowing Nine Mile to start full exploration campaigns on these priority prospects.
We are pleased to announce this strategic acquisition of priority claims in our regional portfolio within this highly prospective area in the BMC. The acquisition cements our holdings around the California-Wedge Projects and most importantly, we now hold the entire mineralized trend encompassing the VMS drilling last year at the California Lake Project. As previously announced, we drilled (8) drill holes with VMS mineralization present over 10m to 14m widths.
Patrick J. Cruickshank, Chief Executive Officer and Director, Nine Mile Metals Ltd.
He added, “We now can proceed to explore the entire trend and the source target identified with our technology due south of last year’s drilling culminating in a target on the Wedge Project and these newly acquired claims. These new properties increase our footprint in the Nine Mile Synform directly south of our Nine Mile Brook Project and adjacent on the western boundary of our acquisition last year of the Windfall claims.”
“Our leading-edge technologies have identified high priority trends and specific targets that we now own 100% allowing us to address the entire geophysical trend. We look forward to future announcements on these (2) wholly owned target areas in our expanding portfolio in the BMC,” Cruickshank concluded.
According to the agreement, the company proposes to buy the New Claims in exchange for 300,000 common shares of the company with a four-month hold legend. Furthermore, the New Claims resulting from metallic mineral production are subject to a 2.0% net smelter royalty (NSR).
At any point before the start of commercial production, the company has the option to pay the vendors $1,000,000 to acquire the vendor’s 50% of the 2% NSR. The vendor is at arm’s length from the company. The acquisition will be completed on September 14th, 2023.