Majuba Hill Copper Corp (CSE:JUBA) said it has entered into an agreement with Ruby Hollow, LLC to acquire a 100% interest in the Copper King and Desert Mountain Claim Group, near Juab in Utah, which consist of 6,827.994 acres of highly prospective claims and leases.
The two claim blocks are situated approximately 90 kilometres (km) SW of Kennecott’s prolific Bingham Canyon Mine Complex - just west of Salt Lake City, Utah - and 40 km SW of the Tintic Mining District which hosted some of the richest lead/silver mines in the state.
The Copper King Claims is a greenfield project that hosts numerous quartz-specularite veins with occasional Cu-oxides, barite, and fluorite showings that increase in intensity along the western flank of the mountain range.
A field program took place in 2020 that focused on collecting structural orientation data and geochemical grab samples of veins to provide further insight into the mineralizing system. Geophysical anomalies outline potential targets for drilling the 5113.214-acre property.
READ: Majuba Hill Copper drills longest copper mineralized intercepts ever at Majuba Hill Project in Nevada
The Desert Mountain Claims is a block of land covered by the DMG claims, the Coyote Knoll claims, and a state section on the west side of the claim block. There are alteration, mineralization, and jasperoids in the volcanic and Precambrian rock covered by the claims. There is a small mine on the property called the Coyote Mine with small production and reported 1000 ounces of silver.
A review of the drilling, including creating cross sections of the drilling, indicates excellent opportunities along a mostly east-west structure covered by the claims. Additional opportunities can be found north and south off this east-west structure. The overall block size is approximately 1,714.78 acres.
In a statement, David Greenway, Majuba Hill president and CEO, commented: "While we continue to advance our flagship Majuba Hill Copper Project showcasing the potential for 1.5 billion pounds of copper, with results just announced to expand that size, which will contribute to the development of a NI 43-101 compliant copper resource. Our phased approach is how the next great copper mines of America will be developed."
He added: "This in an era when copper has never been in greater demand, the shortfall for copper been forecasted to become so significant and the need to find strategic copper reserves in domestic, safe, American, mining-friendly jurisdictions been so imperative. Bravo to 2022. We couldn’t be more excited to see what 2023 brings. We are excited to add to the company’s US-based mining portfolio with this strategic acquisition to find the next ‘Majuba Hill’."
In consideration for the transaction, Majuba Hill will issue an aggregate of 3,000,000 common shares in the capital of the company at a deemed price of US$0.13 per share. The consideration shares will be subject to a four-month and one-day restriction on resale commencing on the closing date of the acquisition.
Under the purchase agreement, the company has agreed to undertake and assume all obligations related to the properties such as certain royalty interests and maintaining the subject property in good standing.
Majuba Hill also revealed that it has engaged Positive Phil Inc of San Marcos, California, to provide digital marketing services to the company for a term of 30 days, in consideration of 300,000 RSUs. Positive Phil will utilize its online programs and media placement to generate a greater following, increase investor awareness and attract new investors through many different online platforms and methods of engagement.
Majuba Hill Copper is engaged in the identification, review and acquisition of latter-stage copper and copper/silver/gold assets in direct response to the growing worldwide demand and lack of supply for precious metals fueled by the Green New Deal in the US and most other developed nations with similar programs aimed at addressing climate change.
Such programs are heavily reliant on silver, gold and especially copper to produce Electric Vehicles and other renewable power sources, as well as building infrastructure to provide clean and affordable electricity.
The company's flagship project is the Majuba Hill copper, silver and gold district located 156 miles outside Reno, Nevada. Management has been mandated to focus on safe, mining-friendly jurisdictions where government regulations are supportive of mining operations.
Contact the author at jon.hopkins@proactiveinvestors.com