PMET Resources (TSX: PMET) has substantially increased their claim holdings in the James Bay region of Quebec. The company has entered into an arrangement with Azimut Exploration (TSXV: AZM) to acquire the Pikwa property, which is contiguous to PMET’s flagship Shaakichiuwaanaan property.
Found to the immediate west of Shaakichiuwaanaan, the Pikwa property consists of 509 mineral claims that cover 10 kilometres of prospective greenstone belt trend. The purchase consolidates PMET’s ownership in the region, expanding their holdings to over 70 kilometres of that prospective greenstone trend which hosts the CV5 and CV13 deposits. The trend is also said to be prospective for several different deposit styles including orogenic, porphyry, and LCT pegmatite.
“The acquisition of the Pikwa Property is a strategic addition to our significant land holdings in the region and consolidates some of the most prospective LCT pegmatite trend globally. The Pikwa Property includes over 10 km of greenstone belt, including its northern and southern margins, in addition to numerous base and precious metal prospects where historical work has been focused,” commented Darren Smith, Executive VP of Exploration for PMET.
The Pikwa claims were acquired for $3.1 million in shares at $3.68 per share, resulting in the issuance of 841,916 common shares of PMET. The claims also contain a 1% net smelter return royalty granted to Azimut, and a separate 1% net smelter return royalty that has been granted to SOQUEM.
Shares issued under the transaction are subject to a 35% 12 month resale restriction, while the remaining 65% of shares are subject to a 24 month resale restriction, with exceptions for some early sales dependent on certain price thresholds being met.
PMET Resources last traded at $3.70 on the TSX.
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