Reviewed by Alex SmithFeb 7 2022
West Mining Corp. (“West” or the “Company”) announced that it has completed the Option Agreement with Dean Fraser (the “Optionor”), which was initially disclosed as a LOI on January 25th, 2022. West will have the right to earn a 100% undivided interest in Blue Cove Copper Property as a result of this transaction.
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The Company is extremely pleased to announce the Option Agreement has been fully executed, and want to take the opportunity the convey our excitement at closing the deal. We also thank Dean Fraser for his swift and attentive response, and we look forward to the upcoming 2022 field season.
Nicholas Houghton, CEO, West Mining Corporation
The Blue Cove Copper Property, in southeast Newfoundland (at the head of Fortune Bay), is home to large copper deposits in outcrop. Over the last two years, prospecting has revealed many new possibilities, and copper mineralization may be found locally across the claims. Grab samples from the Blue Cove Property yielded results as high as 5.1% Cu, 33 g/t Ag, and 0.27 g/t Au, according to the best assay thus far.
On the Property, copper mineralization is mostly found in altered volcanic rocks and sediments, with the primary copper minerals being chalcocite, with low amounts of chalcopyrite and bornite. Copper oxide is present in abundance on various outcrops across the land.
The Property is made up of 232 claims that encompass 5,800 hectares and are located 22 km from the Terrenceville fault structure. The area also has excellent infrastructure, including a deep-sea port at the adjacent town of Terrenceville.
West will be able to fully exercise the option under the Option Agreement by paying the Optionor an aggregate of $160,000, issuing the Optionor an aggregate of 1,700,000 common shares in the Company’s capital, and incurring an aggregate of $750,000 in exploration expenditures on the Property, as follows:
Source: West Mining Corp.
| |
Cash |
Shares |
Work Commitment |
| On execution of the Option Agreement (the “Execution Date”) |
$ 10,000 |
$ 250,000 |
- |
| 12 Months after Execution Date |
$ 20,000 |
$ 300,000 |
$ 100,000 |
| 24 Months after Execution Date |
$ 30,000 |
$ 400,000 |
$ 100,000 |
| 36 Months after Execution Date |
$ 100,000 |
$ 750,000 |
$ 250,000 |
| 48 Months after Execution Date |
|
$ 300,000 |
| Aggregate |
$ 160,000 |
$ 1,700,000 |
$ 750,000 |
The Optionor is entitled to a 3.0% net smelter returns royalty on the Property if West successfully exercises the option, with West having the right to acquire one-third (1.0%) of such net smelter returns royalty from the Optionor for $1,000,000 at any time.