ScientificMetals Corp. secured the right to enter into a lease agreement withan option to acquire the Iron Creek cobalt property in Idaho, according to aJuly 26 statement.
Under the letter agreement with a private company,Scientific Metals will pay US$45,000 to the vendor upon signing of the leaseagreement, and the vendor will retain a 4% net smelter return royalty. Thecompany will also make monthly advance royalty payments to the vendor.
The option allows the company to acquire a 100% interest inthe property and reduce the royalty from 4% to 1% by paying US$1.5 million. Theroyalty can then be purchased for US$500,000 in cash for every 1% acquired byScientific Metals.
The Iron Creek property covers 137 acres in seven patentedlode mining claims, and the company is staking unpatented lode mining claims toincrease the size of the property to at least 1,300 acres.
In addition, Scientific Metals started trading on the OTCQBmarketplace under the symbol SCTFF, while continuing its listing on the TSXVenture Exchange.