- Braveheart Resources (BHT) has signed a letter of intent with Cadillac Ventures to acquire the Thierry Mine Project near Pickle Lake in Ontario
- Under the terms of the deal, Braveheart will acquire 100 per cent of the property for C$300,000 in cash and 13.5 million common shares
- Cadillac will also retain a two per cent net smelter return royalty on the project, half of which may be purchased by Braveheart for $1 million
- The two companies intend to finalise a definitive agreement for the acquisition within the next 30 days
- Braveheart Resources (BHT) remains unchanged and is trading at 12 cents per share
Braveheart Resources (BHT) has signed a letter of intent with Cadillac Ventures to acquire the Thierry Mine Project near Pickle Lake in Ontario.
Under the terms of the agreement, Braveheart will acquire 100 per cent the project for a total of C$300,000 in cash and 13.5 million common shares.
In addition, Cadillac will retain a two per cent net smelter return royalty on the property, half of which may be purchased by Braveheart for a one-off fee of $1 million.
Norman Brewster, President and CEO of Cadillac Ventures, said the combination of the Thierry Mine Project and Braveheart’s assets is a natural one.
“We believe the proposed transaction is a compelling one to Cadillac and its shareholders, providing a significant cash injection, continued exposure and upside to any success on Thierry and exposure to a broader property package through the proposed pro-forma ownership in Braveheart,” he added.
The Thierry copper-nickel platinum group elements deposit was discovered by Belgium-based Union Miniere Exploration and Mining in 1969, and was mined with an open pit and underground operation from 1976 until 1982 before it was shutdown due to low commodity prices.
According to a resource estimate completed by P&E Mining Consultants in February 2012, the Thierry underground deposit hosts 8,815,000 tonnes at a grade of 1.66 per cent copper and 0.19 per cent nickel.
The property is also thought to contain a near-surface inferred resource at the K1-1 deposit of 53,614,000 tonnes at a grade of 0.38 per cent copper and 0.1 per cent nickel.
Ian Berzins, President and CEO of Braveheart Resources, also commented on the deal, noting the significance of the infrastructure already in place at the project, with power grids and established mining communities.
“The proposed acquisition of the Thierry Mine Project represents a significant next step in the growth of our company.
“The project is very complimentary to our Bull River underground copper, gold and silver mine in British Columbia and provides the company with project and geographic diversification,” he said.
Braveheart Resources (BHT) is currently steady and is trading at 12 cents per share at 3:04pm EDT.