Matador Mining (ASX:MZZ) has signed an option agreement to acquire the Blue Cove Copper Project in south-east Newfoundland, Canada.
Blue Cover is an early stage, copper, lead, zinc, and silver exploration project with samples up to 10.6% copper and up to 106 grams per tonne (g/t) silver.
Under the agreement, Matador, which has a market capitalisation of $35.67 million, will provide an initial upfront payment of C$10,000 (A$11,217) upon execution, as well as C$20,000 on the 12-month anniversary and $30,000 on the 24-month anniversary of the agreement.
The agreement also includes a 1% net smelter royalty upon starting commercial production, half of which can be repurchased by Matador for C$500,000 at a later date.
Once the 24-month period and payment is complete, Matador will hold 100% of the project.
Managing Director and CEO Sam Pazuki says Blue Cove is underexplored with several copper targets that have not been entirely assessed.
“It is in an area of the province that we view as having incredible potential,” Pazuki says.
“Five high-quality targets have already been defined on the project, with rock chip sampling from the Blue Cove target area returning greater than 1% copper from over 50% of the samples collected and greater than 2% copper from about a third of the samples collected including specific samples grading up to 5.1% copper and 33.2g/t silver.”
Matador plans to carry out early stage exploration work towards the end of Canadian summer this year.
The Blue Cover project includes 78 non-contiguous claims covering 19.5km2.
Write to Aaliyah Rogan at Mining.com.au
Images: Matador Mining
