Cloudbreak Discovery PLC (LSE:CDL) has signed up a new partner which has optioned the Atlin West gold-silver project in British Colombia, Canada.
The new partner, 1315843 BC Ltd, joins ‘project generator’ Cloudbreak for the venture to explore the recently staked Atlin West acreage which is located around 14 kilometres from Atlin and is seen as potentially hosting polymetallic vein systems.
"We are excited to explore the promising Atlin West Project with this group,” said Cloudbreak chief executive Kyler Hardy.
“Using Cloudbreak's expertise, coupled with that of 1315843 BC Ltd.'s, we believe that modern exploration applied to this claim group could further expand on the geologic picture and understanding of the potential currently only highlighted by limited prospecting to date.”
Through the option deal, 1315843 BC agrees to spend up to C$700,000 on the property, with at least US$150,000 to be invested in year one. It will also issue 8mln common shares and US$325,000 in aggregate cash payments to Cloudbreak.
Upon completion, 100% of the project equity will be earned by 1315843 BC and Cloudbreak will retain a 2% net smelter royalty over the project.
Hardy highlighted: “The 2% NSR that Cloudbreak retains on the property as part of the agreement is demonstrative of how our business model allows us to work with great partners and share in exploration success".