Lion Copper and Gold Corp (TSX-V:LEO, OTCQB:LCGMF) revealed that it has acquired the Blue Copper prospect in Montana, USA, which it described as a "truly exceptional copper-gold skarn mineralized system" the firm believes is similar to several other world-class copper-gold deposits.
The property sits around 25 miles from Helena in the cretaceous Blackfoot City Stock (BCS) geology and encompasses 14 historic small mines that produced high grade gold, copper and tungsten.
"I look forward to bringing my own Montana background to bear in leading the company's exploration efforts in a sustainable manner to the benefit of the people of Montana," said Travis Naugle, the CEO of Lion Copper and Gold in a statement
"As an integral part of this, we wish to express our appreciation for the grassroots support received thus far by the local community, including the area ranchers and prospectors," he added.
READ: Lion Copper and Gold inks deal to spin out its Butte Valley property option in Nevada
The company noted that streams draining the BCS have a recorded production of almost 200,000 ounces of placer gold through 1959, although actual output was much higher. Despite this, only one lode gold mine operated historically and produced less than 10,000 ounces.
In the late 1980s and early 1990s, several major companies conducted exploration programs in the area and Lion Copper and Gold said it was currently compiling and interpreting historic data to develop a 2022 work plan.
The firm has struck a purchase agreement with 406 Mining for the Blue Copper prospect, which will see it, on closing, issue 1.5 million of its shares and provide a net smelter return royalty (NSR) of 2% with a buy-down of 1% NSR for US$1.5 million.
Also in the statement, the company said it was to settle outstanding debt of US$109,520 with an arm's-length creditor by issuing 1,398,790 of its shares at a deemed price of C$0.10 each.
Lion Copper and Gold is advancing the MacArthur copper project in Nevada, and exploring the Chaco Bear and Ashton properties in British Columbia.
The company's MacArthur asset sits in Mason Valley, a large, historic copper camp within a land package spanning 51 square miles. The project is a large-scale, low-cost, heap leach operation with potential for near-term production of pure copper cathode.
Contact the writer at giles@proactiveinvestors.com