NeoTerrex Minerals Inc. (TSXV: NTX) (“NeoTerrex” or the “Company”) is pleased to announce that it has entered into an option agreement (the “Agreement”) dated effective September 13, 2024, pursuant to which the Company has been granted the right to acquire 50% of the title and interest (the “Option”) in and to 32 mineral claims covering approximately 1,750 hectares located in the Province of Québec, Canada (the “Property”). 18 claims (“Block A”) are owned by a non-related party and 14 claims (“Block B”) are owned by Mathieu Stephens, President and CEO of NeoTerrex. The transaction is subject to acceptance by the TSX Venture Exchange (“TSXV”), as the Option is considered a “Reviewable Transaction” under the policies of the TSXV.
The Property is located within the gold and critical minerals rich Abitibi geological sub-province, approximately 60 km northwest of the town of Waswanipi, Quebec and 20 km north of the Montiviel rare earths deposit. The hosted metallogenic features (stratigraphic, structural and thermodynamic) confirm the presence of a favourable geological context for the search of precious and base metals (critical minerals). The presence of volcanic and sedimentary rock units; a major unconformity; a major fold axis; a young intrusive nearby to the southeast; base metal occurrences located along and on strike of the apparent same geological unit and the presence of several electromagnetic geophysical anomalies are all deemed favourable indications of the potential for finding mineralization on the Property.
The Property was originally explored in the 1980s by Noranda Exploration Ltd. (“Noranda”) for its copper potential. Several targets had been recommended to be drill tested at the time, but there is no indication that Noranda proceeded to do so. The Property is also located 15 km east, and within the same greenstone belt where Newmont Corporation is actively exploring for gold as part of an option agreement with Kenorland Minerals.
Mathieu Stephens, President and CEO of NeoTerrex stated, “We are excited to move forward with the acquisition of the Valour property, a strategic addition to our expanding project portfolio. While the Abitibi geological sub-province is globally recognized for its world-class copper and gold deposits, this region remains largely underexplored. We are eager to capitalize on this opportunity as part of our strategy to unlock untapped potential and pursue additional value-accretive transactions, driving shareholder growth.”
Pursuant to the terms of the Agreement, to earn a 50% undivided interest in the Property, the Company must:
– Block A: pay a total of $5,000 to the vendor and incur $300,000 in work expenditures by December 31, 2025;
– Block B: incur $200,000 in work expenditures by December 31, 2025.
As Mathieu Stephens, the President and CEO of NeoTerrex, owns Block B, the acquisition of Block B is deemed to be a “related party transaction” as defined under Multilateral Instrument 61-101-Protection of Minority Security Holders in Special Transactions (“MI 61-101”).
The acquisition of Block B is exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 (pursuant to subsections 5.5(a) and 5.7(1)(a)) as at the time the transaction was agreed to neither the fair market value of, nor the fair market value of the consideration for, the transaction, insofar as it involves interested parties, exceeded 25% of NeoTerrex’s capitalization.
No finders’ fees are payable in connection with the Agreement.
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