-- NovaRed Mining (NRED.CN) entered into a property option amending agreement, whereby it may buy a 70% interest in an additional five mineral tenures comprising about 4,573.82 hectares, known collectively as the Trojan-Condor Corridor, it said Friday.
These additional claims are adjacent to the nine claims that comprise NovaRed's existing Wilmac Copper-Gold project and expand the project size to a total of 16,077.76 hectares, it added. The company must pay the optionor $100,000 and issue 3-million units in its capital to the optionor upon Canadian Securities Exchange (CSE) acceptance for filing.
Each unit will consist of one common share and a two-year transferable share purchase warrant entitling the optionor to buy a share for $1.80. The company must pay an additional $150,000 to the optionor by March 31, 2027, and fund $8.5 million in exploration expenditures on the claims, including $1.5 million in stages in 2026, in order to exercise the option.
The 70% interest in the claims that NovaRed may buy pursuant to the option is subject to a 2% net smelter returns royalty (NSR), the company said. It may buy one-half of the NSR for a one-time payment of $2 million.
Upon the exercise of the option, the company must pay the optionor an annual advance royalty payment of $100,000 per year so long as the company retains its interest in the property.
"Our priority is to integrate the historical IP, magnetics, soils, and drill data with our 2026 geophysical program at Wilmac and define the most compelling drill targets across the consolidated Project," said NovaRed Mining Chief Executive Brian Goss.
Shares of the company closed unchanged at $1.8 on Thursday on the CSE.