- GreenLight Metals (TSXV:GRL) signed a binding term sheet with Barrick Mining (TSX:ABX) for an earn-in and joint venture to develop GreenLight’s Kalium Canyon gold project in Esmeralda County, Nevada.
- The junior mining company is advancing high-potential copper and gold projects in Wisconsin and Nevada.
- GreenLight Metals stock has added 143.75 per cent year-over-year.
GreenLight Metals (TSXV:GRL) signed a binding term sheet with Barrick Mining (TSX:ABX) for an earn-in and joint venture to develop GreenLight’s Kalium Canyon gold project in Esmeralda County, Nevada.
The 2,758-hectare project, located within Nevada’s prolific Walker Lane trend, features a 1-2-kilometre corridor of alunite-kaolinite to the west consistent with a buried epithermal system. To the east, the Argentite prospect, Kalium’s main mineralized body, hosts gold-bearing quartz veins, breccia and stockwork mapped for approximately 610 metres with widths up to 83 metres. Historical sampling on the property is highlighted by 50 ft at 3.74 grams per ton (g/t) gold, while drilling has yielded up to 5 ft at 9.85 g/t gold.
Under the term sheet, and subject to a definitive agreement, Barrick may earn up to 60 per cent of the project by completing US$7.5 million in qualifying exploration expenditures (QEE) and making cash payments of US$1 million over a six-year stage 1 earn-in period, which is expected to lead to a joint venture project company or mutually agreed holding structure with Barrick as operator.
The gold mining giant may earn a 70 per cent interest in Kalium by funding an additional US$12 million of QEE over a four-year stage 2 earn-in period, and an 80 per cent interest by completing a pre-feasibility study within a 48-month stage 3 earn-in period, with all development costs to be covered solely by Barrick.
If Barrick terminates its rights before the vesting of stage 1 earn-in, GreenLight will retain 100 per cent of the project and Barrick be liable for the initial cash payment, accrued installments, reimbursement of the 2026 BLM annual claims fees, the first US$750,000 of Stage 1 QEE, accrued reclamation, environmental and third-party obligations, as well as delivery of material project data and reports.
Leadership commentary
“Securing a binding term sheet with Barrick is a significant validation of Kalium Canyon’s geological potential,” Matt Filgate, President and Chief Executive Officer of GreenLight Metals, said in Thursday’s news release. “Barrick’s technical team brings unmatched epithermal expertise in Nevada, and their track record of discovery and development success, including the world-class Fourmile discovery, makes them the ideal partner to advance the property. The staged structure allows Barrick to fund exploration and any pre-feasibility work through to an 80 per cent interest while preserving meaningful upside for GreenLight.”
About GreenLight Metals
GreenLight is a junior mining company advancing high-potential copper and gold projects in Wisconsin and Nevada.
GreenLight Metals stock (TSXV:GRL) is up by 2.63 per cent trading at C$0.39 as of 9:43 am ET. The stock has added 143.75 per cent year-over-year.
