Vancouver-based exploration company Metallis Resources has signed an option deal to acquire a 100% interest in the Greyhound Property from Greyhound Mining & Milling (optionor) in the US.
The deal calls for exploratory costs of $10m (C$13.58bn) spread over ten years, as well as staged payments of $670,000 beginning on the date of signing.
The company may exercise its option to purchase a 100% interest in the property at any point during the option period by paying $7.5m in addition to the $670,000 that is still owed at the time of exercise.
Furthermore, for a period of three years, Metallis will grant the optionor a share purchase warrant that can be used to buy up to one million common shares of Metallis at C$0.34 apiece.
During the duration of the agreement, the optionor may lower its 2% net smelter returns royalty to 1% by paying $5m.
Located in the US state of Idaho, the property is spread across 124ha of land and comprises the past-producing Greyhound and Bulldog high-grade silver/gold mines, along with multiple historic workings.
It features 12 patented mining claims, three patented mill site claims, one patented pending mining claim and eight patented pending mill site claims.
The property is easily accessible by road, located 41km from Stanley and 225km from Boise, and hosted within granites as well as granodiorites of the Idaho batholith.
A significant 3.6km-long mineralised shear zone, up to 12m wide, is a highlight of the property, featuring multiple quartz-sulphide veins.
Metallis notes that this zone is underscored by the two past-producing mines and several historic surface workings.
Additional parallel mineralised shears have been identified and await further evaluation.
Metallis geological team's ongoing review of historic assays indicates a robust system with consistent mineralisation at various historic sites, including the Greyhound and Bulldog mines.
Completion of the latest acquisition is pending regulatory approvals.
Metallis president and CEO said: “Although we are seeing an overall change for the better in investor sentiment, it is important to recognise the current market conditions and understand the cost and dilution implications of large-scale exploration in the Golden Triangle at this time.
“As the market continues to find its feet, it is critical for Metallis to add value in alternative ways, despite the fact that our principal project remains the Kirkham Property. With that in mind, we started the process in 2023 to look at possible acquisitions and the group that owned the Greyhound stood out.”
