Mistango River Resources has signed an option agreement to purchase a 100% stake in the Ledden copper-gold project in the Chibougamau District of Quebec, Canada, from undisclosed firms (vendors).
Located 15km from Chibougamau and nearby to all the major infrastructure remaining from Chibougamau’s mining camp, the Ledden property includes 26 contiguous cell claims.
According to the agreed terms, Mistango will provide $200,000 in cash or shares, as well as $1.2m to fund work at the Ledden property over a three-year period, to earn a 100% stake in the Ledden project.
The vendors, however, will retain a 2% net smelter return royalty of the property.
Mistango chairman Stephen Stewart said the firm is interested in the potential for bulk tonnage copper-gold deposits in the Chibougamau District.
Stewart said: “This acquisition represents an investment in a large, mineralised structure that is near-surface and mostly untested. Furthermore, the area has top-tier infrastructure yet is still an emerging district in the context of open pit mining based on new interpretations our group has developed.”
Mistango expects the acquisition of the Ledden project to allow it to maintain significant exposure to gold and substantial exposure to copper.
The firm said in a statement: “Quebec is a top-tier jurisdiction and management believes that assets in jurisdictions such as Canada and Quebec will be valued at a premium in the coming years.
“Furthermore, Quebec offers tremendous support through direct provincial investment and infrastructure funds such as Plan Nord. Mistango also notes that copper is within Quebec’s Critical and Strategic Minerals Plan, thus offering additional exploration incentives.”
Mistango plans to undertake a phase one drill campaign on the Ledden property and complete it over the coming months.