TORONTO (miningweekly.com) – Zinc-focused explorer, project developer and miner Trevali Mining has signed a letter of intent (LOI) with junior Puma Exploration to acquire an interest in the Murray Brook deposit, located in New Brunswick's Bathurst Mining Camp (BMC).
The Vancouver-based miner said on Friday that it will also form a proposed strategic exploration alliance in the northern portion of the BMC with Puma, subject to conditions and approvals.
"The agreement comports well with Trevali's BMC strategy whereby the company will leverage our infrastructure and operational expertise to further expand our footprint within the region. The addition of Murray Brook builds on Trevali's significant resource inventory of potential mill feed in the camp that also includes our Halfmile mine, Stratmat and Restigouche projects," Trevali president and CEO Dr Mark Cruise stated.
Under the terms of the LOI, Trevali has the option to provide all or part of the remaining C$7.5-million in funding to Puma in order for it to finalise the 100% acquisition of the Murray Brook deposit within the timeframes outlined in the underlying agreements ultimately leading to a 75:25% ownership interest between Trevali and Puma, respectively, and a 51:49% ownership in the Murray Brook East property, respectively.
Further exploration and development of the Murray Brook Deposit are to be funded proportionally and are subject to industry standard dilution clauses. Depending on consultation, permitting, mine planning and operational studies, the plan is to advance the Murray Brook deposit to a production decision to provide optionality to Trevali either alongside or after Caribou mine operations.
Trevali will manage these programmes, including advanced engineering studies and any final production decisions.
Further, Trevali will subscribe for C$500 000 worth of units of Puma at an issue price equal to the five-day volume weighted average trading price of Puma's common shares ending on Friday. Each unit will consist of one common share and one-half of a warrant, with the warrants being fully transferrable, having a three-year term and an exercise price set 30% above the issue price of the common shares that form a part of the units. The proceeds will be used to advance the exploration alliance, the company advised.