Cloudbreak Discovery PLC (LSE:CDL) and its partner Alianza Minerals have issued an option to Allied Copper over the Stateline copper project that comprises 22 unpatented mining claims in Colorado.
Under the option, Allied will spend C$3.75mln on exploration, C$0.5mln in the first year, issue 4.25mln shares and pay C$315,000 cash. Alianza and Cloudbreak will retain a 2% net smelter royalty.
Kyler Hardy, Cloudbreak’s chief executive, said: "We are delighted to grow our relationship with Allied and are looking forward to lending support for their exploration efforts in the Paradox Basin.
“Having both Stateline and Klondike with the same partner will allow us to gain a better understanding of the geological setting and explore the regional opportunity unfolding with this partnership."