Deer Horn Capital Inc. said Oct. 11 that it signed a binding letter of intent to purchase the Colorado Klondike tellurium property in Colorado from Colorado Klondike LLC.
The deal's terms were not disclosed.
Colorado Klondike acquired the property in 2013 from First Solar Inc., which held it as a potential primary source for its cadmium-telluride solar panels. Previous exploration on the property yielded tellurium grades of up to 3.3%, along with high gold grades.
Deer Horn is conducting further due diligence on the property as it works to sign a full agreement later in the year.
The company is focused on developing its Deerhorn gold-silver-tellurium property in British Columbia. A preliminary economic assessment for the project pegged an after-tax net present value of C$36.5 million, at a 5% discount rate, and an internal rate of return of 42%.