Tempus Resources Ltd (ASX:TMR) (CVE:TMRR) (FRA:4W0) has executed a joint venture agreement with Canadian company Robinhood Gold Corp (RGC) covering the Mineral Creek Gold Project in British Columbia, Canada.
The project, which is on Vancouver Island around 10 kilometres east of the town of Port Alberni, was acquired by Tempus together with the Blackdome-Elizabeth Gold Project, also in British Columbia, last year.
Spread over 9,877.29 hectares, the project consists of 42 contiguous mineral claims all 100% owned by Tempus subsidiary Sona Resources.
There are no underlying royalties and the property is readily accessible by an extensive network of all-season logging roads.
Opportunity to unlock value
Tempus managing director Brendan Borg said: “The Mineral Creek Gold Project was acquired along with our flagship Blackdome-Elizabeth Gold Project in late 2019.
“We welcome this opportunity to unlock value from the project through this transaction with Robinhood and look forward to seeing the story develop as exploration proceeds.”
Shares have been as much as 8.5% higher to A$0.265.
Mineral Creek project
Mineral Creek has a long history of gold mining, dating back to the late 1800s where placer gold was mined from Mineral Creek and China Creek, and from several adits along the Mineral Creek Fault Zone, where gold was mined from high-grade gold-quartz veins.
Results from the most recent diamond drilling programs (2005-2010) include:
- 7.20 metres at 159.03 g/t gold from 63.80 metres including 4.50 metres at 253.6 g/t from 64.30 metres;
- 1.65 metres at 215.55 g/t from 26 metres; and
- 0.80 metres at 244 g/t from 42.10 metres.
The key terms of the agreement are:
RGC to earn an initial 75% interest in the property by completing the following work commitment and consideration payments:
- Complete minimum expenditure on the property of C$100,000 by December 31, 2021;
- Complete total cumulative property expenditures of C$500,000 by December 31, 2022, and C$2,000,000 by December 31, 2023; and
- If RGC completes an Initial Public Offering (IPO) then RGC will pay Tempus C$100,000 in fully paid common shares of RGC at the IPO issue price or if RGC does not complete an IPO but becomes listed on any stock exchange via any transaction then RGC will pay Tempus $30,000 of fully paid common shares of RGC.
Tempus retains a 1% Net Smelter Royalty on the property.
RGC will be the operator and will be fully responsible for all costs associated with maintaining the mineral claims in good standing.
Following the completion of the option, the parties will establish a joint venture and contribute to project expenditures on an equity basis (after C$2,000,000 minimum expenditure by RGC).
RGC has the right to acquire an additional 5% of the Mineral Creek Property by paying Tempus C$1,000,000 at any time during the option/JV agreement period.
The agreement is subject to a 30-day due diligence period and is subject to ASX and/or TSX.V exchange approval as required.
Robinhood Gold Corp, an unlisted Canadian company, was registered in British Columbia, in August 2020.
The private company, which was formed to acquire gold projects, may go public on the TSXV via an IPO or RTO, however, there are no specific plans at this stage.