THE BOURSE WHISPERER: Corazon Mining (ASX: CZN) has negotiated new, more favourable terms for the company’s acquisition of the Lynn Lake nickel-copper project, located in the central Canadian province of Manitoba.
Corazon currently controls the entire historical Lynn Lake nickel sulphide mining area, which includes ground it owns 100 per cent following the acquisition of the Victory nickel-copper project earlier this year and ground on which the company has the rights to acquire 100 per cent.
Under the terms of the original Option Agreement, Corazon was required to make a cash payment of C$1million by 20 October this year to acquire 100 per cent equity in the project.
The company has renegotiated substantially more favourable terms for the acquisition, which it said removes the requirement for the C$1 million lump sum payment, replacing it with half-yearly payments of C$100,000 until payments totalling C$1 million are made.
This will bring the final payment due on 20 April, 2019.
Corazon said by removing the one-off payment, the re-negotiation of terms ensures development work on the Lynn Lake project area will progress.
“This new deal helps with advancement of the project and we’re fortunate that all parties have the common goal of developing Lynn Lake,” Corazon Mining managing director Brett Smith said in the company’s announcement to the Australian Securities Exchange.
“We’ve recently consolidated the land package and having all the prospective nickel ground under the control of one company provides an enormous benefit to focus investment and optimise our resources.
“The work Corazon is currently undertaking at Lynn Lake is extremely exciting.
“We have access to an enormous amount of mining and exploration data across the entire project area which is yet to be consolidated and analysed using modern exploration understanding and techniques.”
In April 2015, Corazon announced an initial JORC Indicated and Inferred Mineral Resource estimate for the Lynn Lake project of 9.4 million tonnes at 0.88 per cent nickel and 0.4 per cent copper, for 83,000 tonnes of contained nickel and 37,800 tonnes of contained copper.
The company is currently completing mining studies and compiling datasets for modern exploration targeting ahead of proposed drilling.