Proactive Investors - Run By Investors For Investors

92 Resources brings in partner Far Resources, which could earn up to 90% of Hidden Lake

To earn 60%, Far must spend $500,000 in exploration within a year..
92 Resources brings in partner Far Resources, which could earn up to 90% of Hidden Lake
Hidden Lake is a lithium project...

92 Resources Corp (CVE:NTY) has inked a deal, which gives Far Resources Ltd (CNSX:FAT) the right to earn-in up to 90% of its Hidden Lake lithium project in Canada.

Far Resources will become the operator, leaving 92 free to become more active with its other projects, said the latter.

"The company (92 Resources) will benefit from bringing in a financially and technically strong partner to further develop the project, and in the process will become a substantial shareholder of Far Resources with the ability to share in the project’s success," said 92 Resources.

 "We have shown that the Hidden Lake project has lots of great potential. Bringing in a partner like Far Resources gives us the ability to develop the project further at no out of pocket cost to us," said Adrian Lamoureux, the chief executive of 92 Resources.

"If the project proves up as well as we hope, and Far Resources exercises its options, we will be a big part of that success through our remaining interest in the project and our share position in Far Resources."

On closing the deal, Far will pay $50,000 cash and issue  $500,000 worth of its shares.

To earn 60%, Far must spend $500,000 in exploration within  a year. It can then acquire an additional 10% for a total of 70% by issuing $250,000 worth of Far shares and spend $500,000 during the next year on exploration.

It then has  two more options of 10% each, so as to earn up to 90%, in  each case by issuing additional Far Resources shares to 92 Resources and expend additional amounts on the project within the year after each exercise.

Keith Anderson, chief executive of Far Resources added: “We like the potential of the Hidden Lake project. We think it fits in extremely well with our overall mineral development strategy. We look forward to working with 92 Resources as a partner and we have high hopes for Hidden Lake’s prospects."

View full NTY profile View Profile

92 Resources Corp Timeline

Related Articles

1542997473_serbian-landscape.jpg
November 24 2018
Freeport can earn into the two licences, which are within the southern portion of the Timok Magmatic complex
1539089213_Brazil-flag-shutterstock_295534262.jpg
October 10 2018
The venture will evaluate potential acquisitions of deposits not limited to manganese but for vanadium and other strategic minerals
Lithium cube
December 08 2018
The resource exploration and development company looks to supply the rapidly growing lithium-ion battery industry for both mobile devices and laptops, as well as the burgeoning electronic-vehicle industry

© Proactive Investors 2019

Proactive Investors Australia PTY LTD ACN:132787654 ABN:19132787654.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use