The company will also commit a further C$50m towards exploration on the properties within four years of the transaction’s completion and will pay Sabina a royalty on silver produced from the properties.
The Hackett River property comprises nine mineral leases totaling 12,250 hectares, while the Wishbone area comprises 132 mineral claims covering 107,227 hectares.
Xstrata said exploration drilling in Hackett River has confirmed an NI 43-101 compliant resource of about 60 million tonnes of ore containing zinc, silver, copper, lead and gold, with about 5.2 million tonnes of zinc equivalent, housed within four proximal near surface deposits amenable to open pit mining.
