Brixton Metals Corporation (TSX-V: BBB | OTCQB: BBBXF) has signed a letter of intent, giving, Pacific Bay (TSXV: PBM) the option to acquire a 100% interest in the Atlin Goldfields Project, located within the traditional territory of Taku River Tlingit First Nations, Atlin, British Columbia, Canada.
Under the terms of the LOI, Pacific Bay may earn a 51% interest in the property by spending C$3,500,000 in exploration, paying C$1,725,000 cash, and issuing 5,000,000 Pacific Bay shares, on or before the 4th anniversary of the closing of a definitive agreement.
Once the 51% earn-in has been completed, Pacific Bay may earn the remaining 49% interest by completing an additional C$3,500,000 worth of exploration spend, by paying C$1,500,000 cash, and issuing 5,000,000 Pacific Bay shares, on or before the 7th anniversary of the closing of a definitive agreement.
If Pacific Bay only chooses to exercise the 51% earn-in and elects to not take the additional 49%, Pacific Bay and Brixton Metals will enter into a joint venture, with the interest in the property reverting to 49% in favour of Pacific Bay and 51% in favour of Brixton, with each party then participating in programmes and budgets according to their pro-rata interests.
If Pacific Bay completes the option and acquires 100% of the Atlin Goldields property, Brixton will retain at 2% Net Smelter Return Royalty (NSR), with 1% of the NSR purchasable at any time by Pacific Bay for C$2,500,000.
Chairman and CEO Gary R. Thompson stated, “We are excited to have Pacific Bay take on the Atlin Goldfields Project. This deal would mark Brixton’s second option agreement, having optioned the Hog Heaven Project to Ivanhoe Electric in recent years. It provides value add for Brixton shareholders while the Company focuses on the flagship Thorn Project.”
For further information please visit: https://brixtonmetals.com/
