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New Point to acquire past-producing copper mine in Nevada

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New Point to acquire past-producing copper mine in Nevada

New Point Exploration Corp. secured an exclusive option to purchase the past-producing Majuba Hill copper project in Nevada for US$4.0 million and a series of minimum payments.

The company said May 29 that it entered into an exploration lease and an option to purchase agreement with Nevada-based Majuba Hill LLC. In addition to copper, historical underground mining between 1907 and 1960 also produced silver, lead, zinc, tin, and placer and lode gold.

The minimum payments total C$400,000 and 1.0 million shares over four years. The company will also spend C$450,000 over two years for exploration and development at Majuba Hill and will reimburse the owner US$25,706 for exploration costs.

The owner is entitled to a 3% production royalty on precious metals and 1% on other metals, based on net smelter returns.

New Point intends to raise up to C$3 million to fund development of the Majuba Hill property, project acquisition and exploration, and general working capital. The company will undertake a nonbrokered private placement of 12.0 million units at 25 Canadian cents apiece.

Each unit will comprise a common share and half of a share purchase warrant, with each whole warrant exercisable for one year at 35 cents.

New Point recently agreed to acquire Goldhat Resources Inc. and its U.S. subsidiary, which holds a long-term lease over the mining claims collectively known as the Empire lithium property that covers about 600 acres in Nevada.