Cloudbreak Discovery PLC (LSE:CDL) has inked an option agreement for the Rizz Project, in Canada, spanning some 5,415 hectares of mineral titles in north western British Columbia.
The company will divest to a vehicle known as BCCo (1311516 BC Ltd) which can earn a 75% interest in Rizz by spending C$750,000 on exploration over a three-year period.
BCCo will also issue 3mln shares to Cloudbreak and make C$120,000 of aggregate cash payments, with the first C$25,000 due on the transaction’s effective date.
Together the new partners will enter into a joint venture which will see each party responsible for its pro-rata share of expenditures on the project.
Describing Rizz to investors, Cloudbreak said: “The Rizz project covers 5,415 hectares of mineral titles in north western BC, situated in the Boundary Ranges Metamorphic Suite and Sloko Group plutonic and volcanic rocks west of the Llewellyn fault.
“Mineralisation is documented in the Sloko-Hyder plutonic suite with several gossanous zones identified for immediate follow up. The known mineralisation is described as sulphide-rich felsite boulders and talus in one of the cirques on the property.”
Cloudbreak noted that assays of historic samples from the Rizz area include up to 27.6 grams per tonne ("g/t") gold, 562.9 g/t silver, 8.25% lead and 15.9% zinc.
The company said that the future exploration programmes will include seeking the source of the strongly mineralised material.