Cloudbreak Discovery PLC (LSE:CDL) said Norseman Silver Inc fulfilled its obligations under an option agreement with Cloudbreak over the the Caribou project in British Columbia.
Under the terms of the option agreement, Cloudbreak has been granted a 2% net smelter royalty.
Norseman has also made payments in aggregate of C$80,000 to Cloudbreak, issued 2.75mln shares to Cloudbreak and has made an aggregate of C$225,000 expenditure on the property.
"It is great to see our model working successfully and have one of our partners complete their option,” said Kyler Hardy, chief executive of Cloudbreak Discovery.
“This project exemplifies how Cloudbreak can generate interesting ideas with significant exploration upside for our partners, and demonstrates to our shareholders how our model is designed to work. The royalty and share position that Cloudbreak retains will continue to provide exposure to the future upside of the property and allow us to pursue new ideas as we generate them."
The Caribou project is located 23 kilometres southwest of Smithers, British Columbia, Canada. Rock samples from the property have yielded assay results greater than 1% copper.