On Friday last week, Pancontinental Resources Corp. (Pancon) entered into a binding letter of intent (LOI) with Pelangio Exploration Inc. to acquire up to a 75% interest in the Strachan project, covering 2280 ha within the Montcalm Greenstone Belt, 65 km northwest of Timmins (Ontario). Strachan is Pancon's fourth early stage Ni-Co-Cu exploration project in the emerging Montcalm battery and energy metals district, and it consolidates Pancon's control over most of the highly prospective gabbro intrusives across 15 760 hectares.
The Strachan project binding letter of intent (LOI) forms the basis for an option and for a future joint venture (JV) agreement. Under the binding LOI, Pancon can earn a 60% interest in the Strachan project for total cash payment of CAN$40 000 and issuance of 400 000 common shares over an initial three-year period as well as a CAN$250 000 work commitment over those three years, including CAN$50 000 within the first year.
Pancon can earn a further 15% interest, for a total 75% interest in the Strachan project, by completing an additional CAN$500 000 work commitment over an additional three year period.
Pancon President and CEO, Layton Croft, stated: "Pancon now controls more than 157 km2 in a proven nickel-cobalt-copper mining location west of Timmins. Glencore's former Montcalm Mine property covers less than 5 km2 of the Montcalm Gabbro Complex. With Strachan, in addition to our Montcalm, Gambler and Nova projects, Pancon is the dominant player in an emerging battery and energy metals exploration district. Pelangio is an excellent company led by high quality exploration and mining professionals, and we are excited to be their partner."
The Strachan project
The Strachan Project covers 22.8 km2 and is located in Strachan and Melrose Townships, due south of Montcalm Township. The Strachan project is approximately 5 km south of Pancon's Gambler project, 10 km east of Pancon's Nova Project, 13 km south of Pancon's Montcalm project, and 19 km south of Glencore's former Montcalm mine.
The Montcalm mine was discovered and developed based on a single airborne electromagnetic anomaly identified in the 1970s and previously mined 3 931 610 t of ore grading 1.25% nickel (Ni), 0.67% copper (Cu), and 0.051% cobalt (Co), producing in excess of 4 million lb of Co (Ontario Geological Survey, Atkinson, 2011). Pancon cautions that the mineralisation on the former Montcalm mine is not necessarily indicative of the mineralisation that may be identified on the Strachan project.
Pancon intends to explore the Strachan project by using both state-of-the-art airborne versatile time domain electromagnetic (VTEM) and airborne gravity geophysical surveys. This is the same approach the company took in 2018 at the nearby Montcalm project, which resulted in successful delineation of more than a dozen new high priority targets not detected by previous operators over the past four decades.
In addition, the company announces that it has granted a total of 1.1 million options to directors, officers, consultants and an advisor of the company to purchase common shares at an exercise price of CAN$0.08 cents per common share, expiring on 17 January 2024.
Read the article online at: https://www.globalminingreview.com/finance-business/21012019/pancontinental-resources-corp-to-acquire-75-stake-in-strachan-project/