Northern Fox Copper is purchasing six contiguous mineral claims, including the Eaglehead Property, spanning 15,956 hectares in British Columbia from District Copper Corp.
Northern Fox, a wholly owned Copper Fox Metals subsidiary, will pay C$1.412mn ($1.062mn) for Eaglehead, including C$1.2mn cash over three-year instalments, and C$212,000 for a reclamation bond. In addition to a C$50,000 non-refundable deposit paid by Northern Fox, it will pay C$150,000 at closing.
Through the agreement, District Copper will receive a 0.5pc net smelter return royalty from the Eaglehead Property, half of which Northern Fox can acquire for C$1mn before the second anniversary of Eaglehead’s commercial production.
The Eaglehead project is known to hold large reserves of copper, molybdenum, gold, and silver and initial exploration has identified five zones that could have porphyry copper deposits, making the project a strategic fit for Copper Fox.
The Canadian company aims to explore and develop large porhyry copper projects across North America.
US$1 = C$1.32 as on February 11, 2020.