New World Resources Ltd. said Jan. 14 that it secured the exclusive right to conduct due diligence for acquiring the Antler copper deposit in Arizona from SW Metals Inc.
The company has a four-year option to fully acquire the project for cash payments in stages and upon reaching certain milestones. It is also obliged to spend US$3.5 million on exploration within the option period.
It can exercise the option to fully acquire the project by paying SW Metals US$1 million. SW Metals will also be entitled to a US$1 million payment within two months from the start of commercial production, a net proceeds interest and US$1 million paid over 10 months.
New World Resources can purchase all of SW Metals' net proceeds interest for US$10 million.
The company aims to start its drilling program at Antler this quarter, to be followed with initial mine designs and economic studies.
The company noted that about 70,000 tonnes of high-grade ore was mined at Antler between 1916 and 1970.
The deposit has a historical mineral resource estimate of 1.95% copper, 4.13% zinc, 0.94% lead and 35.9 g/t silver within 4.7 million tonnes.