Pacific Empire Minerals Corp (CVE:PEMC) (OTCQB:PEMSF) announced it had received cash and share payments from M3 Metals Corp as part of an option agreement for its Stars project in British Columbia.
The Vancouver-based prospect generator received the second anniversary cash payment of C$50,000 and 30,000 M3 shares under the agreement, which was signed in November 2017.
M3 Metals has the right to earn a 30% interest on the project in return for spending C$4.5 million in exploration.
READ: Pacific Empire Minerals strikes option to buy Jean Marie property in British Columbia
Pacific Empire has a 50% ownership in Stars, a highly prospective porphyry copper-gold-silver-molybdenum system near well-developed infrastructure in British Columbia. The two-year option agreement gives M3 the chance to earn up to 30% interest in exchange for aggregate cash payments of C$80,000 and 60 million shares, which was reduced to 60,000 after M3’s ten-to-one share consolidation in February 2019.
In 2018, M3 drilled 6,300 metres over 16 holes, which led to the discovery of a new mineralized porphyry system at the Tana Zone.
"With completion of cash and share payments, M3 will now have until June 5, 2021 to incur an additional $2,100,000 of exploration expenditure, in order to complete its 30% earn-in on the project,” Pacific Empire’s CEO Brad Peters said in a statement.
Highlights from drilling at Stars include results of 0.5% copper over 204 metres from 23.5 metres and 0.2% copper over 405 metres from 29.6 metres.
Pacific Empire will retain a 20% carried interest on the project until a prefeasibility study is completed, after which the two companies will form a joint venture.
The project generator is focused on the discovery of gold-rich copper prospects in British Columbia.
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