Canadian mining company Pancontinental Resources announced that it has entered into a binding letter of intent (LOI) with Pelangio Exploration to acquire a 75% interest in the Strachan Project.
The Strachan Project is spread over 2,280 hectares area within the Montcalm Greenstone Belt, 65kms northwest of Timmins, Ontario.
The acquisition makes Strachan the fourth early stage Ni-Co-Cu exploration project of Pancon in the emerging Montcalm battery and energy metals district. Pancon says the acquisition consolidates its control over most of the highly prospective gabbro intrusives across 15,760hectares.
The Strachan Project binding LOI stands as the basis for an option and a joint venture agreement in the future.
Under the binding LOI, Pancon is allowed to earn a 60% interest in the Strachan Project for total cash payment of C$40,000. It has to issue 400,000 common shares over an initial three-year period along with a C$250,000 work commitment over those three years, including C$50,000 within the first year.
As per the LOI, Pancon is allowed to earn a further 15% interest, for a total 75% interest in the Strachan Project, by completing an additional C$500,000 work commitment over an additional three-year period.
Pancon president and CEO Layton Croft said: “Pancon now controls more than 157 square kilometres in a proven nickel-cobalt-copper mining location west of Timmins. Glencore’s former Montcalm Mine property covers less than 5 square kilometres of the Montcalm Gabbro Complex.
“With Strachan, in addition to our Montcalm, Gambler and Nova projects, Pancon is the dominant player in an emerging battery and energy metals exploration district. Pelangio is an excellent company led by high quality exploration and mining professionals, and we are excited to be their partner.”
The Strachan Project covers 22.8km2 in area and is located in Strachan and Melrose Townships, due south of Montcalm Township. The Strachan Project is hosted by the Strachan Gabbro Complex, which is geologically similar to the Montcalm Gabbro Complex.