- Komet Resources (KMT) has agreed to an option agreement for Osisko Mining’s Brunswick Belt exploration property
- The property covers 72 kilometres of the Brunswick Belt and includes the Key Anacon and Gilmour South base metal deposits
- The agreement will allow Komet to acquire up to 75 per cent of the property by spending up to C$15 million in three stages over seven years
- The acquisition is part of the company’s transformation into a Canada-based metals explorer
- Komet Resources (KMT) remains unmoved and is trading at 12 cents per share
Komet Resources (KMT) has agreed to an option agreement for Osisko Mining’s Brunswick Belt exploration property.
The property covers 72 kilometres of the Brunswick Belt and includes the Key Anacon and Gilmour South metal deposits.
The agreement will allow Komet to acquire up to 75 per cent of the property by spending up to C$15 million in three stages over seven years.
In the first tranche, Komet will spend $1 million on exploration before the first anniversary of the agreement, alongside a cash payment of C$100,000. This will net Komet a 25 per cent stake in the property.
The second option requires Komet to complete a further $9 million in exploration work over the next five years of the agreement, which will net the company a further 26 per cent. This will leave Komet with a 51 per cent stake in the property.
The final tranche of the agreement will require Komet to fund a final $5 million in exploration work over the final two years and complete an economic study on the project. This will bring the company’s total stake in the site to 75 per cent.
Interim President and Chairman of Komet Resources, Robert Wares said he was very happy to reposition the company as precious metals explorer in Canada, through this latest acquisition.
“This agreement is an important first step toward achieving our new objectives with both Greenfield and brownfield Canadian exploration targets.
“We are especially excited to have the opportunity to expand the resources at Key Anacon and Gilmour South and further explore the prolific Brunswick Belt, host to world-class massive sulphide deposits of past-producer Brunswick Mining and Smelting,” he said.
Komet Resources (KMT) remains unmoved and is trading at 12 cents per share at 1:50 pm EDT.