Guyana Goldstrike Inc (TSX-V:GYA) announced that it has entered into a letter of intent to acquire the Jupiter copper project in Antofagasta, Chile from Jupiter Electric Metals.
Following the closing of the transaction, the company said in a statement that it plans to change its name to Copper X Mining as it focuses its resources on developing the project.
Guyana Goldstrike (GYA) highlighted that Targets 1 and 2 at the 4,000-hectare property host robust copper grades in proximity to historic workings and mine developments.
Target 1 has evidence of copper mineralization in a corridor of at least three kilometres by two kilometres, the company said.
Numerous targets at the project are interpreted to be present in proximity to contact zones of mafic intrusives and La Negra volcanics which GYA said was favourable for hosting hydrothermal solutions rich in copper.
Further, the area near the project hosts world-class mine operations including Michilla, Antofagasta’s Antucoya, Mantos Copper’s Mantoverde and Mantos Blanco, Teck’s Carmen de Andacollo, Lundin’s Candelaria, Anglo American’s El Soldado, and major projects including Marimaca Copper Corp’s Marimaca, Hot Chili’s Productora-Cortadera and Capstone’s Santo Domingo, the company noted.
Acquisition terms
Per the letter of intent, GYA said it has the exclusive right to acquire the Jupiter project in exchange for a series of cash payments, securities issuances, and exploration expenditures.
This includes paying $US1 on the signing of the agreement, which has already been paid, and making four payments of US$50,000 to the vendor on or before August 24, 2023, February 24, 2024, August 24, 2024, and February 24, 2025.
Within 10 days of the TSX Venture Exchange issuing its final acceptance bulletin regarding the transaction, GYA will also issue 12 million shares of the company, following a consolidation of one and a half shares to one share, and 7 million share purchase warrants giving Jupiter Electric Metals the right to purchase up to seven million post-consolidation shares at C$0.25 for a period of two years.
GYA is also required to complete a US$75,000 work program at the project within 90 days of executing the letter of intent and complete 5,000 metres of drilling on or before February 24, 2025.
Further, GYA is required to pay US$1 million on or before February 24, 2027, in cash, post-consolidation shares or a combination determined by Jupiter Electric Metals to the vendor.
Concurrent with the acquisition, the company said it would conduct a non-brokered private placement of up to 12 million units at a price of C$0.15 per unit for gross proceeds up to C$1.8 million.
The proceeds will be used by GYA to maintain the project and support further development, for liabilities and payables, to address costs associated with the transaction, and for working capital.
Guyana Goldstrike is a Canadian gold exploration and development company with a focus on near-term production and advanced exploration.
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