Constantine Metal Resources (CEM.V) has confirmed Dowa Metals & Mining has decided to exercise its option to acquire a 49% participating interest in the Palmer VMS project as it has completed the mandatory US$22M earn-in.
US$2M of the unspent funds will be transferred to the joint venture level which will allow some additional exploration to be conducted before a first cash call from the JVco to both owners.
Constantine probably won’t have to raise cash on the equity markets anytime soon, as it’s still in the process of selling some Ontario-based claims to Tahoe Resources (THO.TO, TAHO). CEM expects the claim transfer to be completed in January, and will then receive a US$4.5M cash payment. This, combined with the existing US$2M on the JV level, should be sufficient to cover the cash needs for the 2017 exploration program at Palmer.