Canadian explorers Falcon Gold and Marvel Discovery Corp have optioned their jointly held Baie Verte Brompton Line property in Newfoundland to Carmanah Minerals Corp.
Baie Verte Brompton Line, or BVBL, consists of 1402 claims spanning 35,050 hectares near the Hare Hill granitic system, which has shown promise for rare-earth mineralization.
Carmanah recently acquired the Hare Hill rare earth project in the western part of the province.
Under the agreement, Carmanah will make cash payments totaling $155,000 over a four-year period and issue five million common shares, along with five million share purchase warrants. Falcon and Marvel will receive their respective shares of the payments and shares.
The properties of Falcon and Marvel will be subject to a 2.5% NSR (Net Smelter Royalty), with Carmanah having the option to purchase 1% for a cash payment of $1 million.
Following the closing of the deal, Falcon and Marvel will hold a significant equity stake in Carmanah.
Falcon and Marvel CEO Karim Rayani told investors that the company is “very pleased” to have been able to work an option deal with Carmanah Minerals.
“Carmanah presents a great opportunity for all companies while allowing us to share in the success of potentially a new district scale discovery.”
Falcon currently has around 90,000 hectares of prospective ground surrounding major structures in Gander, Hope Brook, and the Victoria Lake Area, Rayani noted.
“We look forward to new developments coming out of the BVBL as the area is quickly becoming known for its rare earth potential,” the CEO added.
Contact Angela at angela@proactiveinvestors.com
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