New Cantech courts potential Asian partner for Lucky Ship

Vancouver – Subject to completion of a due diligence review, New Cantech Ventures (NCV-V) has signed a non-binding memorandum of understanding (MOU) with a major Southeast Asian corporation for a possible option and joint venture of its Lucky Ship molybdenum project 85 km south of Houston, B.C.

Under the terms of the MOU, the undisclosed firm has a month to review technical information and data related to the road-accessible project, which is located within driving distance of Cantech’s other projects near Alice Arm and Sweeny Lake.

Based on a recent National Instrument 43-101-compliant report, Lucky Ship hosts an indicated resource of 19.2 million tonnes grading 0.076% moly, plus an additional inferred resource of 33.9 million tonnes grading 0.069% moly. Both estimates are based on a 0.03% cutoff grade.

The non-binding MOU states that the Asian corporation may be granted an option to purchase up to a 60% interest in the Lucky Ship property, and can enter into a joint venture with Cantech for further development of the property, including development of a mine.

During the first year of the option, the Asian company would have to spend at least $3.3 million on exploration, followed by at least another $1 million in each of the next two years to fund a bankable feasibility study. Within three months of a bankable feasibility study, the corporation must use its best efforts to place the project into production within 18 months, or failing that, within another 18 months.

Once the option and joint venture are signed, the Asian corporation must purchase 2 million units of Cantech at US$0.50 per unit, consisting of one common share and one share purchase warrant.