Brixton teams up with Friedland company on Hog Heaven project

27.10.2020, 19:00 - eeppo

Brixton Metals (TSXV: BBB) has entered a joint venture agreement on its wholly owned Hog Heaven project with High Power Exploration (HPX), a privately owned mining company led by billionaire and Ivanhoe Mines founder Robert Friedland.

The Hog Heaven project is an advanced stage silver-gold-copper-lead-zinc deposit with historical production located in Flathead County, Montana. Many of the past underground mine workings where high-grade silver-gold-copper were extracted have not been drilled.

“We see high potential for further discovery at Hog Heaven. We believe that the past producing Flathead mine, where Anaconda Copper historically produced high-grade direct-shipping silver-gold ore, is just one part of a much larger precious metals and copper system,” Graham Boyd, principal geologist of HPX, commented.

Under the JV agreement, High Power can earn a 51% interest in the project by making a total of $4.5 million in cash payments and incurring $15 million in exploration expenditures.

It may earn an additional 24% interest (for a total of a 75% interest) by incurring an additional $25 million in exploration expenditures, bringing total value of the transaction to $44.5 million.

Should HPX choose to complete only the first stage of earn-in, it will transfer a 2% interest in the JV to Brixton, such that the interests are 49% HPX and 51% Brixton, and Brixton shall retain a right of first offer to purchase all of HPX‘s interest.

Furthermore, Friedland himself has also agreed to a C$2 million private placement financing into Brixton, with proceeds being used to eliminate 1.5% of the existing NSR royalty on Hog Heaven held by Pan American Silver (TSX: PAAS).

Shares of Brixton Metals surged 9.7% by midday Tuesday following news of the company teaming up with Friedland. The Vancouver-based miner has a market capitalization of C$58.9 million.