Demesne Resources Ltd. (CSE:DEME) (OTCQB:DEMRF) (“Demesne” or the “Company”) announces that, further to its press release dated November 6, 2024, it has completed the first payment to IMA-1, LLC (the “Optionor”) under the option agreement dated November 5, 2024 (the “Option Agreement”), pursuant to which the Company can acquire a 100% interest in and to the IMA Mine Project located in Idaho, United States (the “IMA Mine Property”).
The first payment under the Option Agreement consisted of a cash payment of US$100,000 to the Optionor.
Under the terms of the Option Agreement, the Company can acquire a 100% interest in the IMA Mine Property, subject to a 2% royalty in favour of the Optionor, by making cash payments to the Optionor in the aggregate amount of US$5,800,000 (inclusive of the first payment of US$100,000) in stages over an eight-year period. For more information concerning the Option Agreement and the IMA Mine Property, please refer to the Company’s press release dated November 5, 2024.
The IMA Mine is a past producing underground tungsten mine situated on 22 patented claims located in East Central, Idaho. With China controlling an estimated 80%+ of global tungsten extraction and processing,1 and no domestic tungsten producers in the U.S., China’s recently announced tungsten export restriction plans underscore the need for a reliable, domestic supply of defense critical metals for America.
Demesne’s CEO, Murray Nye, commented: “Completing the first payment under the Option Agreement to acquire the IMA Mine Property is a major milestone for Demesne and our shareholders. The IMA Mine Property is expected to be a key portfolio asset, enhancing our ability to build on the mine’s past tungsten production and benefit from the capital that previous exploration companies invested to advance the IMA Mine Project. We are also fortunate that the asset is on patented ground and readily permittable. With the first payment under the Option Agreement satisfied, we can now focus on executing our potential next steps: verifying IMA’s historical resources, identifying additional mineralization, and driving toward a mine restart.”
