Stillwater Critical Minerals, a Canadian mineral exploration company, has signed a letter of intent (LoI) with a fellow Metallic Group of Companies member Granite Creek Copper to finalise a definitive agreement to divest a 90% stake in the Duke Island project in Alaska, US.
Duke Island comprises 31 unpatented claims that control the main area of copper-nickel-platinum-palladium (Cu-Ni-PGE) sulfide mineralisation within the Duke Island ultramafic complex.
As per the terms outlined in the LoI, Granite Creek will acquire a majority interest in Duke Island, subject to a 1% net smelter royalty (NSR), through a non-arm's length, all-share transaction.
The acquisition includes the issuance of share units to Stillwater valued at C$150,000 ($107,961) over a three-year period, with the exact warrant terms still to be finalised.
Additionally, Granite Creek is committed to a minimum work investment of C$500,000 over the same period. The NSR royalty to Stillwater comes with an option for Granite Creek to reduce it to 0.5% for C$1m.
The formation of a joint venture (JV) is also proposed based on the ownership levels in Duke Island post-agreement, which is awaiting final approval from the Canadian stock exchange TSX Venture Exchange.
Stillwater president and CEO Michael Rowley said: "We are very pleased to enter this agreement with Granite Creek and look forward to both supporting, and benefiting from, its progress in advancing Duke Island's demonstrated nickel, copper, and platinum group element mineralisation in addition to its carbon sequestration and geologic hydrogen generation potential.”
Stillwater remains focused on its flagship Stillwater West project in Montana, aiming to become a key player in the US' critical mineral supply chain. The company is also engaged in carbon sequestration and geologic hydrogen studies in the region.
Granite Creek is dedicated to exploring and developing critical minerals projects in North America.
Its portfolio includes the flagship 177km² Carmacks project in Canada's Yukon Territory, along with the advanced stage LS molybdenum project and the Star copper-nickel-PGM project, both in central British Columbia.
