Clean Air Metals Inc (TSX-V:AIR, OTCQB:CLRMF) announced that it has made the final payment of C$1 million, for and on behalf of Benton Resources Inc, directly to Rio Tinto Exploration Canada Inc (RTEC) for the Escape Lake Property option.
In a statement, the company said it made the payment on behalf of Benton Resources to satisfy a payment requirement under its pre-existing option agreement with RTEC dated October 9, 2019, relating to the Escape Lake Property in Ontario, Canada.
The final payment of C$1 million was not due under the terms of the Escape Lake option agreement until October 9, 2022, and was accelerated at the company's option.
READ: Clean Air Metals announces C$1M payment to maintain Escape Lake property option
Clean Air Metals said it has now “fulfilled all of Benton's payment obligations” under the agreement, earning Benton a “100% right, title and interest in and to the Escape Lake Property, subject to a 1.0% net smelter return royalty to be retained by RTEC, and subject to Clean Air Metals' right to acquire 100% of Benton's interest” in the Escape Lake property.
Clean Air Metals will be entitled to exercise the option to acquire 100% of Benton's interest in the Escape Lake property, subject to a 0.5% net smelter return royalty from production on the Escape Lake property to be retained by Benton, on completion of the two remaining payments under the share purchase agreement between Clean Air Metals and Magma Metals (ASX:MMW).
The company said C$1.5 million is due by May 13, 2022, and a further C$1.5 million is due by May 13, 2023, provided that both payments can be accelerated at the discretion of Clean Air Metals. On exercise of its option, Clean Air Metals will also assume the obligations of the payor in respect of the RTEC Royalty.
In the same statement, Clean Air Metals and its subsidiary Panoramic PGMs (Canada) Ltd., acknowledged that the Thunder Bay North project is on the traditional territories of the Fort William First Nation, Red Rock First Nation and Biinjitiwabik Zaaging Anishinabek.
The parties together are the cooperating participants in a Memorandum of Agreement (MoU) dated January 9, 2021.
“The company appreciates the opportunity to work in these territories and remains committed to the recognition and respect of those who have lived, traveled, and gathered on the lands since time immemorial,” said the company. Clean Air Metals said it is “committed” to stewarding indigenous heritage and remains committed to “building, fostering and encouraging a respectful relationship with First Nations, Métis, and Inuit peoples based upon principles of mutual trust, respect, reciprocity and collaboration in the spirit of reconciliation.”
Clean Air Metals' flagship asset is its high-grade Thunder Bay North Project, a platinum, palladium, copper, nickel project located near the City of Thunder Bay and the Lac des Iles Mine owned by Impala Platinum.
Contact the author Uttara Choudhury at uttara@proactiveinvestors.com
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