Pacific Ridge Exploration Ltd. agreed to option a 100% interest in the Fyre Lake copper-gold-cobalt massive sulfide deposit in Canada's Yukon Territory to BMC Minerals (No. 1) Ltd., a Canadian subsidiary of BMC (UK) Ltd.
Under the terms, BMC paid a nonrefundable deposit of C$25,000 and must pay an additional C$50,000 if the closing of the transaction occurs before Jan. 23, 2017.
According to a Dec. 28 release, BMC has been granted two options to acquire the project interest.
Under the one-year option, BMC must pay C$300,000 on closing and C$2.2 million one year after to maintain and exercise the option.
Pursuant to the two-year option, BMC will be required to pay C$300,000 on closing, C$300,000 one year after closing and C$2.4 million in two years.
Additionally, BMC agreed to make a bonus payment totaling C$1.0 million if and when its Kudz Ze Kayah zinc property, also in Yukon Territory, reaches commercial production for one year.
The deal is expected to close in early January, subject to securing all required legal and regulatory approvals.