The acquisition of an outstanding “back-in” right on the Huckleberry copper property near Kemano, B.C., gives New Canamin Resources (VSE) an unencumbered 100% interest in the project.
Kennecott had the right to retain a 60% interest at the point of a production decision by paying New Canamin 150% of its development costs. In return for the cancellation of that right, New Canamin will pay Kennecott $100,000 cash plus 214,000 common shares.
New Canamin notes that its objective of a 10,000-ton-per-day operation does not fit with Kennecott’s targeted size requirements.
Drilling is continuing, with about half the planned 35,000-ft. program completed. As a result, the company expects to enhance the grade and tonnage of the Main and East zone deposits.
Prior to the drilling, the resource was estimated at 54 million tons grading 0.6% copper using a 0.4% cutoff.
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