Calgary-based junior Strata-bound Minerals (ASE) has finally found a major company willing to finance exploration on its New Brunswick base metal properties including the Captain North Extension lead-zinc-silver project.
In return for the right to earn a 51% interest in the properties, Vancouver-based Teck (TSE) has agreed to spend $3 million on exploration over four years and pay Stratabound $50,000 on signing.
Under the agreement, Teck will also purchase $87,500 worth of Stratabound shares on each of the first three anniversary dates after the deal is signed and $200,000 on the fourth anniversary. To exercise the option, Teck must pay at least $2, $2.25, $2.50 and $2.75 per share respectively on each of the four anniversary dates or market price, whichever is greater. Teck must also spend a minimum of $300,000 in year-one of the agreement and no less than $250,000 on each of the subsequent years. If Teck fails to spend the full $3 million, the properties revert back to Stratabound with no compensation to Teck.
Covering 5,920 acres in the Bathurst mining district where Noranda (TSE) via 67% owned Brunswick Mining and Smelting is established, the properties include the Taylor Brook, Stratmat North and Stratmat West claims in addition to CNE.
Having already sent a 12,000-ton bulk sample to the nearby Heath Steele mine, Strata-bound has outlined 486,565 tons at CNE averaging 5.6% zinc, 2% lead, and 1.98 oz. silver per ton. Another 48,285 tons grading 1.42% copper and 0.02 oz. gold lie adjacent to the lead-zinc block
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