ONTARIO –
White Metal Resources announced this week that it signed an agreement to acquire a 100% interest in the Seagull Lake palladium-platinum property from its partners
Rainy Mountain Royalty and
Canadian International Pharma Corp.
Seagull Lake is located approximately 90 km north-northeast of Thunder Bay and consists of 133 claims totalling approximately 2,128 hectares.
White Metals reports that the property covers the Seagull Lake Intrusion which is situated in the Nipigon Plate, a geological feature interpreted to have resulted from a failed third arm of a Proterozoic-aged, mid-continent rift system.
"This geological environment has been compared to the Norilsk PGE-Cu-Ni sulphide mining camp of Siberia, Russia, and as such is considered to be highly prospective for the discovery of new world-class Cu-Ni-PGE deposits," the miner explained in a press release.
To move forward with the acquisition, the Thunder Bay-based company has to issue 200,000 common shares to Canadian International Pharma and 150,000 common shares to Rainy Mountain, in both cases on TSX approval.
White Metal will also have the right to purchase 0.4% of the net smelter return royalties controlled by Canadian International Pharma for $600,000 and 0.3% of the NSR controlled by Rainy Mountain for $450,000.
"With palladium at all-time highs (+US$1,500/oz.) and with the possibility of still higher prices due to the uncertainty in the global supply chain, the company believes that the Seagull Lake palladium-platinum property will be a great addition to the company's portfolio," said Michael Stares, director of White Metal.
This story first appeared on www.Mining.com.
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