The deal gives Wyloo Metals the option to acquire an 80% stake in the advanced Ni-Cu-Co-PGE exploration property by spending $19.6m over a seven-year period
Orford Mining has signed an agreement with Australia-based Wyloo Metals for a CAD25m ($19.68m) earn-in and joint venture for its fully-owned West Raglan project in Quebec, Canada.
The deal enables Wyloo Metals to earn up to a stake of 80% in the advanced Ni-Cu-Co-PGE exploration property by spending a total of $19.68m over seven years.
After completion of the earn-in period, the Canada-based Orford Mining will have the option to pro-rata contribute to maintain its interest of 20% in the joint venture or dilute down to a 2% net smelter return royalty (NSR).
Also, a part of Wyloo Metals’ investment is a CAD1.7m ($1.34m) approved work programme to be executed this summer. The programme will cover new ground geophysics, geological mapping, and geochemistry surveys.
Wyloo Metals head Luca Giacovazzi said: “Continuing the discovery of metals like nickel is critical to achieving a low carbon future, which is why we are committed to supporting exploration. To maximise our chances of discovery, we know that we need to be exploring in proven endowed mineral belts.
“This is why we are so excited about West Raglan. We’ll be using modern technologies to look deeper and more effectively than others before us, as we search for the next great Canadian nickel discovery.”
So far, the West Raglan project had seen six major discoveries made at shallow depths with the best results coming from the Frontier Zone.
According to Orford Mining, the Frontier Zone features five high grade mineralised lens clusters over a 2,500m strike with grades in the range of 2-3% Nickel, 1% copper, and 2+gpt PGE.
Orford Mining president and CEO David Christie said: “The West Raglan project is one of the few nickel sulphide projects in the world that is drill ready in a proven nickel belt. Nickel and Cobalt markets have seen a resurgence as the electric vehicle battery market continues to grow demand for these metals.
“We look forward to working with Wyloo Metals towards further discovery of Nickel on the West Raglan Project.”
Located in the west-central part of the Cape Smith Belt in Nunavik, the West Raglan asset spans an area of 663km2 and is close proximity to Orford Mining’s Qiqavik Gold project.
Orford Mining said that operating the two projects together will boost their exploration cost effectiveness because of economies of scale.