Canex Metals Inc. said April 4 that it signed a letter of intent to acquire the Gibson gold-silver prospect in British Columbia from Altius Resources Inc., a subsidiary of Altius Minerals Corp.
Canex can earn a 100% stake in the prospect by issuing an aggregate 3,545,000 common shares and spending C$500,000 on exploration within 18 months, as well as taking over the obligations of an underlying option agreement.
The underlying option calls for payments totaling C$85,000 in cash and shares over four years, milestone bonuses of C$5,000 upon a change of control of the property, C$25,000 upon completion of a bankable feasibility study and C$50,000 upon the start of commercial production.
Altius will also retain the right to buy an underlying 1.5% net smelter royalty along with preferential rights on any future royalties or streams granted on the property. Altius will also have a pro rata right to participate in future equity financings of Canex for two years.
In addition, Canex will issue 1,275,000 shares as a milestone payment if a measured and indicated resource of more than 1 million gold equivalent ounces is defined.
The Gibson prospect covers 887 hectares and hosts mesothermal gold-silver mineralization within highly altered volcanic rocks adjacent to the Hogem Batholith.
Previous drilling on the property defined a zone of gold and silver mineralization measuring about 4.5 meters wide and at least 400 meters long, whereas drilling, soils, and geophysical data suggest the zone could be at least 1,400 meters long. Mineralization remains open in all directions.