New Frontier Minerals (ASX:NFM) has executed a binding option and staged earn-in agreement with Metallium (ASX:MTM) to acquire a 90% stake in the Pomme Rare Earth Element Project in Québec.
The acquisition considerations include an option fee of $100,000 cash and $200,000 in shares, issued based on the 5-day volume weighted average price, followed by an option exercise fee of $150,000 cash and $200,000 in shares, combined with a minimum annual exploration expenditure of $100,00 at the project.
New Frontier will then be required to commit a minimum spend of $2 million at the project within three years to achieve the JORC-compliant resource milestone and attain 80% of the asset.
The company will pay $250,000 cash and $250,000 in shares for the 80% stake.
Within five years, New Frontier will be required to have spent $3 million on the project to complete the Prefeasibility Study milestone.
The company will pay $250,000 cash and $250,000 in shares to boost its interest to 90%.
Metallium will retain 10% free-carried interest for Pomme to a Definitive Feasibility Study.
If Metallium’s stake in the project dilutes below 10%, interest will be converted to a 1.5% net smelter royalty for material processed through its Flash Joule Heating facility.
Metallium will retain full ownership of its Flash Joule Heating processing technology.
New Frontier intends to select diamond drill cores for characterisation tests and accelerate metallurgical assessment on existing samples using the Flash Joule Heating processing technology.
Geological logging, assay results, and geophysics will be integrated into a 3D model to identify higher grade zones for follow up drilling.
New Frontier Minerals is an Australian explorer focused on its multi-commodity assets that show future potential as an economic mining operation.
Write to Maddison Elliott at Mining.com.au
Images: New Frontier Minerals
