Canadian exploration and development company Brixton Metals has entered into a binding heads of agreement with High Power Exploration (HPX), a mineral exploration and development company led by chairperson and CEO Robert Friedland, with respect to a $44.5-million earn-in and joint venture on Brixton's Hog Heaven silver/gold/copper/lead/zinc project, in Montana, in the US.

“This $44.5-million earn-in agreement highlights the high quality and significant potential of the Hog Heaven project and is an endorsement of the work the Brixton team has been doing. This agreement meets Brixton’s strategic objective to accelerate the advancement of the project towards a potential mine development,” says Brixton chairperson and CEO Gary Thompson.

Under the terms of the agreement, HPX has the right to earn a 51% interest in the Hog Heaven project by making cash payments of $4.5-million and incurring $15-million in exploration expenditures.

Further, it may earn an additional 24% interest in the project by incurring an additional $25-million in exploration expenditures.

HPX will control and direct all exploration, development and other related activities during the earn-in periods at the Hog Heaven project.

“We see high potential for further discovery at Hog Heaven. We believe that the past producing Flathead mine, where Anaconda Copper historically produced high-grade direct-shipping silver/gold ore, is just one part of a much larger precious metals and copper system. Our initial work programmes at Hog Heaven will leverage our talented US-based team of geoscientists and deploy the world-class Typhoon geophysical surveying technology to unlock new discoveries,” comments HPX principal geologist Graham Boyd.

Further, concurrent with entering into the heads of agreement, Friedland has agreed to invest C$2-million into Brixton.

Brixton plans to use the funding to eliminate 1.5% of an existing 3% net smelter return royalty held by Pan American Silver. Pan American has agreed to a $1-million purchase price.