Toronto-based Highwood Resources (TSE) is acquiring from Nanisivik Mines the right to earn a 25% interest in a copper exploration project in the High Arctic. The project is on Victoria Island and is being explored by a joint venture comprising Noranda (TSE) and Nanisivik Mines. In the current deal, Nanisivik is assigning 25% of its interest in the joint venture to Highwood.
The original joint venture agreement calls for Nanisivik to provide $5 million over several years to earn its 50% interest. A total budget of $1.5 million has been set for this year’s exploration program.
The property hosts a number of copper showings within a quartzite rock unit that has been traced for several kilometres along strike. Field work is scheduled to commence in May with a program of airborne geophysics. That work will be followed by ground geophysics, geological mapping and diamond drilling.
Nanisivik has agreed to provide roughly one half of Highwood’s share of the exploration funds by subscribing for 700,000 flow-through shares at 85 cents per share. Nanisivik currently owns a 27.4% interest in Highwood. Another 20% of the funds for this year’s program is being provided by Aber Resources (TSE) which is 21.4% owned by Highwood.
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