Canadian miner C3 Metals has entered into an earn-in agreement (EIA) with Freeport-McMoRan Exploration, providing Freeport with the option to acquire up to a 75% stake in C3 Metals' Bellas Gate Project in Jamaica.
The agreement involves a two-stage investment totalling $75m in exploration and project-related expenses.
Under the EIA's first stage, Freeport is required to invest $25m over five years to secure a 51% interest, with C3 Metals continuing as the project operator.
In the second stage, Freeport can opt to lead operations and invest an additional $50m over four years to increase its stake by another 24%.
C3 Metals president and CEO Dan Symons said: "Over the last 2.5 years we have gained a tremendous understanding of the geologic potential of the Bellas Gate Project through a systematic approach to our exploration programmes. The data we have collected to date suggests the potential for a new and emerging copper-gold porphyry and epithermal belt.”
The Bellas Gate Project, adjacent to C3 Metals and Geophysx Jamaica's Super Block joint venture (JV), spans 13,020 hectares (ha) and contains diverse mineral prospects.
The area is rich in mineral potential, featuring 14 porphyry, more than 30 epithermal, and multiple volcanic red bed prospects along an 18km strike.
Symons added: “It is our view that the geometry of the porphyry prospects identified to date suggests we will require advanced targeting methods and extensive drilling to vector into the core of these systems. We believe Freeport is the ideal party aligned on implementing this strategy, which optimises the capital risk profile for our shareholders.
“By executing this EIA with Freeport, we manage risk and avoid significant corporate-level equity dilution while sharing in the potential reward. With multiple, highly prospective copper-gold assets in our exploration portfolio, we believe bringing in an industry leading party such as Freeport on the Bellas Gate Project gives us the opportunity to advance numerous projects within our portfolio in parallel.”
