Delrey to acquire vanadium property in Newfoundland
Delrey Metals (CSE: DLRY) signed a non-binding term sheet this week with respect to the right and option to acquire an 80% interest to certain mineral licences that comprise the Four Corners project in western Newfoundland, Canada.
"The project shows strong drill defined vanadium mineralization at the Keating Hill Zone, with a potential strike length in excess of 4.5 kilometers"
In a press release, the Vancouver-based miner said the negotiation is being carried out with Four Corners Mining Corporation/Triple Nine Resources. There are also discussions about the possibility of establishing a joint venture.
In order to move forward with the deal, Delrey has agreed to pay the optionor an aggregate cash payment of $450,000, issue an aggregate of 12,000,000 common shares in the capital of the company, and incur an aggregate of $5,000,000 in exploration expenditures.
Four Corners is a 5,157-hectare property located 25 kilometres east of the town of Stephenville. The area is host to vanadium enriched titaniferous magnetite mineralization which, according to its current owners, shows encouraging historical evidence for significant and consistent vanadium accumulations.
“This latest acquisition provides further exposure for Delrey and its shareholders within the battery metals sector, which are driving the global change in energy storage," Morgan Good, President and CEO of Delrey said in the media brief.
"Vanadium has historically been used mainly in the steel industry, but more recently demand from redox flow battery development has quickly expanded the requirements globally. Vanadium redox batteries are rapidly being established as the method of choice for large scale, long term, wind and solar produced energy storage where space is abundant.”