Pacific Ridge Minerals (PEX.V) has announced it has acquired full ownership of the Onjo copper-gold project, located about 10 kilometers west of the Mt Milligan mine, a copper-gold mine owned and operated by Centerra Gold (CG.TO). This is the fourth project of the company in the Quesnel Trough and according to CEO Blaine Monaghan a new exploration approach could improve the project as the new exploration thesis is based on the previous exploration efforts on the property encountering the upper levels of an alkalic porphyry system.
Pacific Ridge is paying C$50,000 in cash and has issued 750,000 shares (with a value of a few hundred thousand dollars using the current market value) to acquire the project. Additionally, it has issued a 2% NSR to the seller, Orogen Royalties (OGN.V) whereby Pacific Ridge has the option to repurchase a quarter of that NSR for US$1.5M.
Meanwhile, Pacific Ridge Exploration has attracted Antofagasta (ANTO.L) as joint venture partner for its RDP copper-gold project, also in the Quesnel Trough. Antofagasta will have the right to earn up to a 75% stake in the project by completing C$10M on exploration within an eight year period, while also completing a Preliminary Economic Assessment during that period.
On top of that, Antofagasta will be required to make C$2.15M in cash payments (including a C$800,000 success payment should it exercise its option to acquire 75% of the project). And as there’s a firm spending requirement of at least C$1M in the first year of the earn-in agreement, we can expect some news flow this year.
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