Coast Copper (TSXV: COCO) purchased a mining claim adjacent to its Copper Kettle project in Vancouver Island, B.C. on Thursday.
The ground was previously drilled by BHP (NYSE: BHP) in 1979 and 1989. In those years, the company completed three vertical drillholes totalling 458.7 metres.
“We are pleased to be able to add prospective ground on trend of our Copper Kettle property and adjacent to BHP’s Island copper mining lease and Northisle copper and gold,” said Adam Travis, Coast Copper’s CEO.
Coast Copper acquired the claim through an asset purchase agreement (ASP), in which it issued the seller 300,000 common shares at a price of 34.5¢ (US$0.25) a piece. The vendor also received a 2% net smelter return (NSR) royalty over the claim, with Coast Copper retaining the right to reduce the royalty to 1% by paying the vendor $1 million — and from 1% to 0.5% by paying an additional $2 million.
Located on the northern part of Vancouver Island, Copper Kettle is a 5,225-hectare property hosting the NW Zone. The zone is one of six systems that form the Island Copper Cluster — a 10 kilometre structural-magnetic anomaly — and the only one located outside of BHP’s Island Copper mining lease.
The company is currently advancing geological and copper-equivalent modelling for the property with completion expected in the coming weeks.
Comments