Brixton Metals (TSX-V:BBB) has closed an option agreement to acquire 100% of the Silvergruvan Project in Sweden through commitments totalling C$4.8 million ($4.87 million).
The TSX Venture Exchange-approved agreement requires Brixton to issue C$1.5 million of shares and spend C$3.3 million on exploration over three years.
Brixton can accelerate the option by completing the commitments earlier or cover any exploration shortfall with a cash payment.
Silvergruvan comprises 1,460 hectares of exploration permits in Hällefors Municipality, Örebro County, in south-central Sweden. The property is considered prospective for silver, gold, lead, zinc, antimony, and indium.
Mining occurred intermittently from the 1600s until the late 20th century. Brixton says the geology shares characteristics with regional silver-lead-zinc deposits, including Garpenberg, Sala, and Zinkgruvan.
Once the option is exercised, vendor McKnight Resources will retain a 2% net smelter returns royalty. Brixton can repurchase half of the royalty for C$1.5 million in cash or, subject to exchange approval, shares.
The company has not completed sufficient work to verify the historical data, and further exploration may not define a mineral resource.
The transaction follows initial metallurgical testing at the Trapper target within Brixton’s Thorn Project, which achieved 97% combined gravity and flotation gold recovery.
Brixton Metals is a Canadian explorer holding silver, gold, copper, and polymetallic projects in Canada, the US, and Sweden.
Write to France Pinzon at Mining.com.au
Main image: Brixton Metals
