logo-loader
viewPacificOre Mining

Apella Resources sells Iron-T project in Quebec to subsidiary

no_picture_pai.jpg

Apella Resources (CVE:APA) said Friday it has sold its Iron-T vanadium-iron-titanium project, located 10 kilometres southeast of Matagami, to its wholly-owned subsidiary, Power Vanadium Corp.

Under the terms of the agreement, Apella will receive $1.5 million from Power Vanadium, by way of a secured promissory note, and 81.67 million non-restricted common shares of Power Vanadium.

The company will also receive 35 percent of all funds received as a result of the Province of Quebec mining/exploration incentive and tax refund programs, plus a three percent net smelter royalty (NSR).

Apella will act as operator of the Iron-T project, and will receive a management fee totaling 15 percent of Power Vanadium's total expenditures in each fiscal year. Additionally, Power Vanadium will deliver a bankable feasibility study for the project by the end of July 2014.

The latest resource estimate for the project, completed in May 2011, included results from the company's 2009-2010 exploration activities, and was based on 41 drill holes, including two revised historical drill holes, for a total length of 5,519 metres at Iron-T.

Using a minimum cut-off grade of 0.48 percent vanadium equivalent, inferred resources are now estimated at 14.38 million tonnes, at 0.42 percent vanadium equivalent.

The company said this represents a 24 percent increase from the classified inferred resource of 11.6 million tonnes in the previous report last August.

Monday's transaction is the second move within Apella's 2012 "go-forward plan" and the company expects to undertake similar agreements for its other vanadium-iron-titanium projects in the near-term.

Last month, Apella sold its Lac Dore vanadium-iron-titanium project to its 100 percent-owned Prestige Mining unit.

Under the terms of that sales agreement, Prestige Mining will pay Apella $1.5 million in a promissory note secured by 81.7 million non-restricted common shares in Prestige Mining.

Earlier this year, Apella decided on a strategy of placing three of its vanadium-iron-titanium assets - the Lac Dore/Lac Dore North project, the Iron-T project and the Game Changer project - into wholly-owned subsidiaries dedicated primarily to that particular asset.

As funds are raised to develop the projects, since they are held within subsidiaries, share dilution to the company as a whole is avoided.

The company believes that its current and future potential will be fully maximized from its initiatives targeted toward moving its extensive Canadian vanadium-iron-titanium projects into production.

Vanadium is an essential element in high-quality steel and also has applications in energy storage and green technology.

Vancouver-headquartered Apella Resources is focused on securing a stable Canadian supply of vanadium through its numerous exploration projects in the province of Quebec. The junior explorer also has gold and copper assets in its portfolio.

Quick facts: PacificOre Mining

Price: - -

TSX-V:APA
Market: TSX-V
Market Cap: -
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Global Energy Metals in London discussing plans to develop cobalt projects...

Global Energy Metals Corporation (CVE:GEMC) (OTCMKTS:GBLEF) CEO Mitchell Smith caught up with Proactive's Andrew Scott while in London to update shareholders on progress within its portfolio of cobalt and battery metal projects. Smith says the firm's well-placed to take advantage of the...

9 hours, 14 minutes ago

3 min read