Metal Energy Corp has announced both an option agreement and a call option agreement with Mistango River Resources (CSE:MIS) Inc.
Each agreement pertains to a 15% interest in Metal Energy's Manibridge project, which consists of 19 mineral claims encompassing approximately 4,368 hectares in Manitoba.
First, the option agreement sees Metal Energy grant Mistango the option to acquire the 15% interest in the project in exchange for carrying out $1.5 million worth of work obligations. The idea would be to enable exploration work to be conducted by the end of the year.
READ: Metal Energy acquires 70% interest in Manibridge project in Manitoba; to continue exploration to earn up to 100% interest
Specifically, the work obligations would be incurred primarily through third-party contractors and include drilling, drill-related work, geophysics, reports and sampling, among other things.
Second, the call option agreement sees Mistango, as a vendor, sell the 15% interest in the project to Metal Energy. The purchase price is $2,250,000, the company said, paid in cash or common shares.
The company noted that the mining claims are subject to the following net smelter royalties (NSR): a 2% NSR held by Glencore (of which Mistango has the option to purchase half for $1 million); and a 1% NSR on claims P1271F and P1262F plus a 2% NSR on the other 17 claims being acquired from CanAlaska.
The Manibridge Project encompasses 4,368 hectares and is within the world-class Thompson nickel belt, the company said. The project is 20 kilometers southwest of Wabowden, Manitoba with significant infrastructure and capacity supporting previous exploration programs, including year-round highway access via Highway 6.
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