Elemental Royalty subsidiary Bronco Creek Exploration has entered into an option agreement with First Quantum Minerals for the sale of the Hachita porphyry copper-gold project in south-western New Mexico, US.
The Hachita project is located around 95km south-east of Lordsburg, within the Sylvanite mining district.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
The project targets Laramide porphyry copper-gold and skarn mineralisation in an underexplored area on the eastern side of the Laramide porphyry belt, expanding exploration coverage across a region with recognised potential.
Under the option terms, Elemental will receive an execution payment, staged option payments and defined work commitments during the earn-in period.
The execution and option payments to Elemental exceed $800,000 (C$1.12m) over a five-year earn-in period.
Elemental acquired the project by staking open ground after identifying untested targets in the underexplored Sylvanite district during regional generative exploration work in the Laramide belt in south-western US.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalDataUnder the agreement, Canadian company First Quantum can earn a 100% interest by making a $50,000 execution payment, option payments totalling $750,000 and cumulative exploration expenditures of $6m over the five-year option term.
Upon option exercise, Elemental will retain a 3% net smelter royalty; 1% of the royalty may be bought back for a total of $5m on or before the fifth anniversary of a published resource.
First Quantum will make annual advanced royalty payments to Elemental of $100,000 upon each anniversary of the closing date until the completion of either a feasibility study or a development decision.
Additionally, First Quantum will make project milestone payments of $500,000 upon completion of a feasibility study, and $2.5m upon a development decision.
Elemental CEO David M. Cole said: “This transaction on the Hachita Project represents another excellent example of Elemental’s impressive technical expertise in identifying prospective targets in underexplored jurisdictions and thereby attracting world-class exploration partners.
“We look forward to working with First Quantum to advance Hachita and seeing the project progress further through a formal exploration campaign. Project generation remains a core tenet of our business model as we continue to build our portfolio of royalty interests.”
