Metal Energy has completed the previously announced acquisition of Highland Valley Copper Project in British Columbia, Canada, from Happy Creek Minerals.
The project, located adjacent to Teck’s Highland Valley Copper (HVC) Mine, the largest copper mine in Canada.
As agreed, Metal Energy paid $300,000 and issued around 11.74 common shares in the capital of the company at $0.02 to Happy Creek as consideration. As a result of the deal, Happy Creek now owns a total of 9.9% of the total issued and outstanding common shares.
Additionally, Happy Creek is eligible for a 2.5% net smelter royalty (NSR) on the project. Metal Energy can buy 1.5% of it by paying $5m.
Metal Energy has also agreed to certain conditions which includes, among others, spending at least $250,000 in exploration expenditures on the property by the end of this year.
The company is also required to complete financings with a minimum total of $1.25m before six months and an additional $1.25m before one year. In case, the company misses a payment or fail to complete the initial exploration expenditures, then Metal Energy’s interest in the property shall be transferred to Happy Creek.
The Highland Valley Project stretches 240km² in the southern part of the Guichon Creek Batholith in southern British Columbia. The site is around 3.5 hours from Vancouver and has access to critical infrastructure including roads, rail, and power.
The property was consolidated into a single extensive land package over 17 years. In 2021, Happy Creek acquired the 438-hectare Mystery property at the northern extent of the Highland East claims.
It has geological similarities with Teck’s HVC in two areas- one of which contains copper-silver-molybdenum mineralisation and the other hosts high-grade copper-gold-silver-molybdenum-rhenium mineralisation.
An initial work programme at the property will begin immediately. This includes systematic ground AMT (Audio MagnetoTelluric) geophysical coverage of a highly prospective glacially covered area along trend from Teck’s HVC.
