Lion Copper and Gold Corp (TSX-V:LEO, OTCQB:LCGMF) said it has completed its previously-announced option agreement with Houston Minerals Ltd to acquire a 100% interest in the Chaco Bear and Ashton properties in British Columbia.
The company noted that it issued eight million Lion Copper and Gold common shares and has funded an initial work program of C$200,000 on the properties in consideration for the grant of the option.
It added that it may exercise the option for a period of up to 10 years to acquire the Chaco Bear property by paying C$1.5 million to Houston Minerals, in cash or in Lion Copper and Gold common shares at the company's option; and/or the Ashton property by paying C$1 million to Houston in cash or shares also at the company's option.
READ: Lion Copper and Gold updates on final option terms for British Columbia properties acquisition
Lion Copper and Gold said the cash payments are subject to a discount of between 5% and 15% based on the timing of exercise and cumulative exploration expenditures incurred as at the time of exercise.
Houston Minerals will retain a 2.5% net smelter returns (NSR) royalty on either property after the option has been exercised.
Chaco Bear is hosted in similar rock formations as the Eskay Creek deposit that was in production from 1994 to 2008, according to the company, while Ashton is located in an area that is highly prospective for epithermal style gold mineralization.
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 Sean at sean@proactiveinvestors.com