HPX will obtain the right to earn 51% stake in the project by paying a total of $4.5m cash and spending $15m on exploration
Canada-based Brixton Metals has reached an $44.5m earn-in and joint venture agreement with High Power Exploration (HPX) for its wholly owned Hog Heaven Project.
HPX is a privately-owned mineral exploration and development company.
Under the terms of the agreement, HPX will obtain the right to earn 51% stake in the Hog Heaven Project by paying a total of $4.5m cash and spending $15m on exploration.
The company is eligible to earn an additional 24% stake, taking the total interest in the project to 75%, by spending an additional $25m on exploration, in different stages.
HPX principal geologist Graham Boyd said: “We see high potential for further discovery at Hog Heaven. We believe that the past producing Flathead Mine, where Anaconda Copper historically produced high-grade direct-shipping silver-gold ore, is just one part of a much larger precious metals and copper system.
“Our initial work programs at Hog Heaven will leverage our talented USA-based team of geoscientists and deploy the world-class Typhoon geophysical surveying technology to unlock new discoveries.”
Hog Heaven is an advanced stage silver-gold-copper-lead-zinc project
The Hog Heaven project is an advanced stage silver-gold-copper-lead-zinc deposit with historical high-grade silver-gold-copper production.
The project is located in Flathead County, 55 miles (88.5km) south-southwest of the town of Kalispell, in the northwest portion of state of Montana, US.
Historically, a total of 57,498m drilled on the project from 722 drill holes as rotary, reverse circulation and diamond drill core. Brixton drilled 7 HQ sized core holes for a total of 1,400m in 2020.
To date, drilling was focused on two shallow target areas, the Main Mine and Ole Hill which are smaller than the open ended multi-kilometer geochemical and geophysical footprint of the mineral system, said the company.
Brixton Metals chairman and CEO Gary R Thompson said: “We are very excited to partner with HPX, a world renowned leading exploration and mine development group. Brixton welcomes legendary mining mogul Robert Friedland as a shareholder through a concurrent CAD$2 million investment in the Company.
“This $44.5 million Earn-In Agreement highlights the high quality and significant potential of the Hog Heaven Project and is an endorsement of the work the Brixton team has been doing. This agreement meets Brixton’s strategic objective to accelerate the advancement of the project towards a potential mine development.”