Cloudbreak Discovery PLC (LSE:CDL) and Alianza Minerals Ltd have signed an option agreement with Allied Copper Corp to develop the Klondike project in Colorado, US.
Allied will spend a total of C$4.75mln (£2.8mln) on exploration at the project, under the earn-in agreement. It will also issue 7.0mln shares and make a total of C$400,000 in cash payments to the Cloudbreak and Alianza alliance over a three-year period.
On completion of these obligations, the alliance will transfer the Klondike property to Allied and retain a 2% net smelter royalty.
“The Klondike property is an excellent project, and we are excited with the copper targets outlined to date,” said Cloudbreak president and chief executive Kyler Hardy. “We look forward to working with Allied as they aggressively test the West Graben, East Graben and Northeast Fault targets in 2022.”
Last week, the alliance said a surface sampling programme at Klondike helped define two copper targets and identified a new copper target for drilling.
READ: Cloudbreak Discovery and Alianza Minerals define 3 copper targets at Colorado property