Braveheart Resources (TSXV: BHT) announced that it has entered into a letter of intent with Cadillac Ventures (TSXV: CDC) for the purchase of a 100% interest in the Thierry mine project in Ontario, Canada.
In a press release, Braveheart said that to go ahead with the deal it will have to disburse $300,000 in cash, issue 13.5m common shares of Braveheart and approve a 2% net smelter royalty to be retained by Cadillac, of which 1% can be purchased by Braveheart for $1 million.
The Thierry copper-nickel-platinum group elements deposit is located approximately 15 kilometres west of the town of Pickle Lake. It was discovered by Union Miniere Exploration and Mining of Belgium in 1969 and mined through open-pit and underground workings between 1976 and 1982.
A 2012 technical report estimates a measured and indicated resource at the Thierry underground of 8.8m tonnes at a grade of 1.66% Cu and 0.19% Ni. Additional measured and indicated metal values include 0.13 gpt Pd, 0.05 gpt Au, 0.04 gpt Pt and 4.0 gpt Ag. There are further 14.9m tonnes in an inferred category at a grade of 1.64% Cu and 0.16% Ni.
According to Ian Berzins, Braveheart’s president and CEO, the project is complementary to the company’s Bull River underground copper, gold and silver mine in British Columbia and as it provides project and geographic diversification.
“Braveheart is focused on acquiring and developing past-producing assets, in favourable Canadian jurisdictions with existing mineral resources in place,” Berzins said in the media brief.
“We were particularly drawn to this opportunity because of the significant infrastructure already in place and the proximity to roads, grid power and established mining communities.”