- Fjordland Exploration (FEX) has signed an option agreement with Quebec Precious Metals (QPM) to wholly acquire its Renzy Project
- The company will pay C$50,000 in cash for the 68 mineral claims, issue 1 million common shares to QPC and assume $1 million in exploration expenses
- QPC will also retain a 1 per cent royalty on the project, half of which may be purchased by Fjordland for $500,000 while the second half may be purchased for $2.5 million
- According to a 2007 report, the project hosts an indicated mineral resource of 51,000 tonnes at 0.79 per cent nickel and 0.72 per cent copper
- Shares in Fjordland Exploration are currently suspended and last traded at a price of 9.5 cents each on December 4
Fjordland Exploration (FEX) has signed an option agreement with Quebec Precious Metals (QPM) to wholly acquire its Renzy Project.
Located in the Hainaut Township, Outaouais, the project consists of 68 mineral claims and hosts the past-producing Renzy Mine, from which 716,000 tonnes of ore was mined from 1969 to 1972 at an average grade of 0.70 per cent nickel and 0.72 per cent copper.
According to a 2007 report, the Renzy Project also hosts an indicated mineral resource of 51,000 tonnes at 0.79 per cent nickel and 0.72 per cent copper, along with an inferred resource of 280,000 tonnes at 0.82 per cent nickel and 0.89 per cent copper.
As consideration for the acquisition, Fjordland will issue a total of C$50,000 in cash and 1 million common shares to QPC, and will assume $1 million in exploration expenses over a five-year period.
QPC will also retain a 1 per cent net smelter royalty on the Renzy Project, half of which may be purchased by Fjordland for $500,000 while the remaining half may be purchased for $2.5 million.
In connection with the purchase, the company has also staked a further 79 claims along the southeastern side of the property, bringing the total land package to roughly 86 square kilometres.
“It has a proven endowment of high-grade mineralisation and exploration and development costs can be minimised due to its ease of access,” said James Tuer, President of Fjordland Exploration.
“We believe there is tremendous exploration potential and have staked additional claims to incorporate the Renzy Shear Zone to the south on the speculation that it could represent a feeder zone at depth,” he added.
Shares in Fjordland Exploration are currently suspended and last traded at a price of 9.5 cents each on December 4.