By the end of July, Arbor Resources (VSE) and associated company Wealth Resources (VSE) expect to enter into a joint venture agreement allowing an undisclosed senior mining company to earn a 51% interest in its Galena Giant polymetallic project situated on the Idaho-Montana border.
The two juniors, both managed by Richard Hughes, hold a total land position of 760 claims covering more than 23 square miles of a geologically prospective region about 12 miles northeast of Idaho’s famous Coeur d’Alene mining district.
The Galena Giant project is described as a “Sullivan-style” stratiform lead-zinc-silver target resulting from the discovery of a large mobile mercury soil anomaly by Arbor and Wealth in the Prichard Formation. Subsequent work has the juniors confident the property has numerous similarities to the geological region hosting the Sullivan deposit in British Columbia.
To earn a 51% interest, the senior partner would be required to spend $5 million on the project over four years, plus staged share purchases in both juniors. An agreement is expected by month-end, but it would be subject to regulatory approvals, due diligence and management approval by the senior company.
Once the major earns its interest, a joint venture would be formed to continue exploration and development on a pro rata basis. The major would also be able to further increase its interest to 60%.
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