ASX-listed Odin Metals Ltd. and subsidiary Evandale Minerals Pty. Ltd. secured a three-year option for the right to explore or purchase First Quantum Minerals Ltd.'s Sturgeon Lake properties in Ontario.
To exercise the option, Evandale will pay C$475,000 in stages through the second anniversary of the agreement.
Following satisfaction of the terms, including approval from the Ministry of Northern Development and Mines, First Quantum will transfer its ownership interest in the properties to Evandale and the latter will grant First Quantum a 1.5% net smelter return royalty.
Evandale can buy back 0.5% of the NSR for C$1 million, according to a Feb. 7 release.
Upon completion of the transfer, First Quantum will provide C$1 million to Evandale in financial assurance, and the latter will assume all historical liabilities on the properties.
The Sturgeon Lake properties, which are highly prospective for volcanogenic massive sulfide-style copper and zinc mineralization, are adjacent to Odin's existing Sturgeon Lake project.
The option will increase Odin's exposure from 11.7 square kilometers of unpatented claims to 22.7 square kilometers.
Odin also reported that Jason Bontempo was appointed to its board as an executive director with immediate effect. Simon O'Loughlin resigned as nonexecutive chairman, and Donald Stephens stepped down as a nonexecutive director.
In addition, the company plans to raise A$2.5 million from a placement of 12.5 million new shares at 20 Australian cents each. The shares are expected to be issued by Feb. 12.
