Antler Hill Mining Ltd. said Sept. 4 that it entered into a definitive deal to acquire the Cerro Blanco copper-gold-molybdenum project and the Amiches gold-silver project in Argentina from Entropy Resources SA.
On completion of the transaction, Antler Hill plans to list on the TSX Venture Exchange as a mining issuer, and will principally focus on the exploration and development of Cerro Blanco.
Under the terms, the company is required to make staged payments totaling US$1 million and issue 1.8 million shares over seven years. Entropy will retain a 1.5% net smelter returns royalty on each of the projects, with each royalty capped at US$5 million.
In addition, Antler Hill committed to complete a 1,000-meter drill program in the first year and a 3,000-meter drill program in the second year.
In connection with the deal, Antler Hill plans to launch a placement, with the proceeds to go toward the recommended work program on Cerro Blanco, and general working capital.
Antler Hill will continue under its current management and does not expect to change its name or its TSX-V ticker.
Following completion, Entropy will own an 8.75% stake in Antler Hill, while the latter's shareholders will hold the remaining 91.25%.