PERTH (miningweekly.com) – ASX-listed White Rock Minerals has executed a formal share purchase agreement with unlisted Atlas Resources in order to acquire the Red Mountain polymetallic project, in Alaska.
The Red Mountain project consists of 16 state mining claims and 9 leasehold locations covering a total area of 16 km2.
Atlas holds an option over the Red Mountain project, which would see the company spend $950 000 over a five-year period in ongoing cash payments, along with $1.2-million in exploration over a four-year period.
Furthermore, Atlas would pay a net smelter royalty of 2% to the project owner.
White Rock COO Matt Gill said on Tuesday that the company saw significant discovery potential at Red Mountain, given the lack of modern-day exploration. This was further enhanced by the nature of volcanogenic massive sulphide clustering in camps, and the potentially large areas over which these could occur.
Under the terms of the share purchase agreement, White Rock would issue 1.147 of its own shares for every Atlas share, along with 1.147 five-year options for every Atlas option, exerciseable at 3.5c each.
White Rock would issue a total of 63.8-million new shares to Atlas shareholders, along with 6.3-million options.
The agreement was subject to a number of conditions, including shareholder approval and the issue of the shares.