Stuhini Exploration Ltd (TSX-V:STU) said it has renewed its option on the Ruby Creek molybdenum property, giving it the right to acquire 100% of the project.
The project is under option with Global Drilling Solutions Inc. Vancouver-based Stuhini said that its decision to renew the agreement on its second anniversary was based upon positive geological results from exploration work throughout 2021 and rising molybdenum prices over the last 17 months.
Under the agreement, Stuhini can earn a 100% interest in Ruby Creek by issuing up to 7.3 million shares and making cash payments of up to $1.06 million over a four-year term.
READ: Stuhini Exploration releases update on its 2021 exploration at Ruby Creek
Stuhini exercised its first-anniversary option commitment on December 30, 2020, issuing 1.25 million shares to Global Drilling.
The second-anniversary option commitment consists of 1.75 million shares and a $120,000 cash payment. There are no work commitments required as part of the agreement.
Global Drilling has agreed to accept an unsecured promissory note in the amount of $120,000 non-interest-bearing six-month term loan in lieu of the cash payment.
The 28,631-hectare Ruby Creek project is located 14 kilometres east of Atlin, British Columbia, and hosts 48 different documented mineral occurrences, 16 of which are gold-related, with seven significant gold placer creeks. The property also hosts the historic Ruby Creek molybdenum resource.
Stuhini has an option to acquire 100% of the project subject to a 1% net smelter royalty.
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