Grid Metals Options Makwa Nickel Project To Teck For $15.7 Million In Exploration Spend, $1.6 Million In Cash
Grid Metals (TSXV: GRDM) has entered into an arrangement whereby it has agreed to option up to a 70% interest in the Mawka nickel project in Manitoba to Teck Resources (NYSE: TECK).
The arrangement consists of a two stage option agreement, which if entirely exercised would see Teck spend $15.7 million in exploration on the property, in addition to cash payments of $1.6 million being made to Grid.
The Makwa project is found within the Bird River Greenstone Belt, 145 kilometres east of Winnipeg. The copper-nickel-PGM property boasts two past producing nickel sulfide mines, three pit-constrained nickel sulfide resources, and numerous showings. The property currently boasts a mineral resource estimate consisting of 14.2 million tonnes at 0.75% nickel equivalent.
The goal of the arrangement with Teck is said to be the discovery of a Tier 1 nickel-copper-PGM-cobalt deposit on the property.
Under the terms of the arrangement, Teck can earn a 51% interest in the Makwa project by spending $5.7 million in exploration and paying $600,000 in cash by May 31, 2028. A further 19% interest can be earned by spending an additional $10.0 million in exploration and paying $1.0 million in cash to Grid Metals by May 31, 2031.
Grid Metals last traded at $0.04 on the TSX Venture.
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