Canadian miner Origen Resources has agreed to divest its 100% stake in the Arlington project in British Columbia (BC), Canada, to compatriot Nickelex Resources.
The transaction will see Nickelex gaining a 100% interest in nine claims, which together cover 3,583.89ha, within the Boundary District of south-central BC.
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The completion of this deal is contingent on regulatory approval.
Nickelex Resources can secure a full interest in the Arlington property by fulfilling certain financial obligations.
These include cash payments totalling C$130,000 ($95,140), with $30,000 serving as reimbursement for costs related to the bond posted for the current drill permit, which will be transferred to Nickelex.
Additionally, the company must commit to exploration expenditures of C$250,000 on the property and issue shares to Origen valued at C$200,000 within seven days following regulatory approval.
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By GlobalDataTo complete the acquisition, Nickelex will also need to issue further shares to Origen valued at C$200,000, or two million shares, whichever is greater in aggregate value, by the first anniversary of the regulatory approval.
As part of the agreement, Origen will retain a 2% net smelter return royalty. However, Nickelex has the option to buy 1% of this royalty at any time for a one-off payment of C$1m.
Nickelex has outlined an initial exploration programme for the Arlington project, which includes detailed soil sampling, geological mapping, prospecting and trenching.
This will be followed by a drilling programme of 6–7 holes, totalling around 1,000m, scheduled for 2024.
The primary goal of this exploration is to ascertain the nature of the mineralisation and investigate the potential presence of gold skarn mineralisation, akin to that found at the Buckhorn Mine, located 8km south of the Canada/US border.
Origen Resources CEO Gary Schellenberg said: “Entering into the Arlington agreement is another step towards our goal of monetising the company’s assets.
“The Origen Team is happy to see this asset move to a group with a proven track record of advancing projects and we are excited to be a significant shareholder moving forward.”
