Golden Valley Mines Ltd. said June 12 that it agreed to option up to an 80% interest in its Island 27 cobalt-nickel-silver prospect in Ontario to private Australian firm Battery Mineral Resources Ltd.
Under the terms, Battery Mineral can earn the stake by paying C$500,000 in stages and incurring C$5 million in exploration expenditures over a four-year period ending in June 2021. It is also required to keep the property in good standing.
Golden Valley will have a 20% free-carried interest upon completion of the earn in, and the companies will form a joint venture to further explore and develop the property. The company retains a 1% net smelter returns royalty from the prospect.
A 489-meter drill program launched on the property by Golden Valley in 2008 yielded results including 4 meters at 4.18% cobalt, 0.38% nickel and 12.1 g/t of silver from 110 meters.