Boliden to earn 70% stake in Amarc’s DUKE project

Amarc Resources ( TSXV: AHR; OTCQB: AXREF) has signed an earn-in agreement with the Boliden Group whereby the Swedish major can earn up to a 70% ownership in the DUKE copper-gold district by funding $90 million in exploration and development expenditures on the project.

Amarc’s 678 sq. km DUKE District is 80 km northeast of Smithers within the Babine Region, one of B.C.’s most prolific porphyry copper-gold belts, which hosts Noranda Mines’ past producing Bell and Granisle mines and the advanced stage Morrison deposit.

Under terms of the two-stage option agreement for 70% in the Duke District, Boliden has committed to funding $5 million to be spent in 2022 and early 2023, with Amarc acting as the operator.

Notably, the DUKE project can be drilled during the winter and is well suited to Boliden’s status as one of the Nordic region’s key mineral producers, including active mines in five European mining areas.

Amarc has now accumulated two strategic partnerships with major mining companies, including exploring the JOY copper-gold prospect in the ‘Golden Horseshoe’ of B.C. with Freeport-McMoRan (NYSE: FCX) and exploring the DUKE with Boliden.

These partnerships are believed to enhance the opportunity to realize the full potential of the JOY and DUKE projects.

The company is expected to have regular news flow through year-end, with 37 drill holes pending from the JOY campaign.

Plans are currently being finalized for a drill program at the DUKE.

Amarc shares closed 15% higher on Tuesday at 15.5¢ per share. The company has a market cap of $29 million.