NewPeak Metals (ASX:NPM) has entered a binding term sheet to acquire uranium, rare earth elements (REE), and scandium prospective properties across Quebec and Labrador, Canada, from Emma Fairhurst and Wayne Holmstead.
Under the agreement, NewPeak will pay $500,000 by way of issuing about 33 million NewPeak shares at $0.015 per share, as well as a 2% net smelter royalty from all future mineral production from the tenements.
The company has also agreed to provide a future milestone payment to the vendors of $300,000 through NPM shares or cash, once it has spent $500,000 on exploration.
Once the acquisition is completed — scheduled on or before 31 May 2024 — NewPeak will appoint Emma Fairhurst to the board of directors as non-executive director.
Fairhurst has spent over 20 years in the venture and capital financial public markets, largely in the Canadian and Australian resources markets. She previously worked at Canaccord Genuity where she administered hundreds of millions in assets, private placements and financings.
As part of this transaction, NewPeak is conducting a capital raising comprising a rights issue to raise $500,000 at $0.015, and a placement to raise an additional $500,000.
The funds will supplement NewPeak’s existing and future cash resources from recent and future asset sales — as Mining.com.au previously reported — as well as enable the company to conduct exploration activities on the Canadian properties.
NewPeak intends to begin an aggressive exploration program aimed at defining JORC-compliant resources. Once the transaction has closed, the company will begin a detailed review and evaluation of the vendor’s compilation of historical exploration and creation of a geographic information system (GIS) database.
The company will also reinterpret existing airborne and ground geophysical data, as well as conduct reconnaissance geochemical sampling, scintillometer traverses, and broad-scale geological mapping.
Once these activities are completed, priority areas will be followed up with wide-spaced, low-detection soil sampling and drilling, which will allow the definition of JORC resources and be used for metallurgical purposes.
The Quebec and Labrador tenement package in the George River area encompasses 16,100 hectares, comprising the Stewart Lake, Strange Lake, Nanuk and Crater Lake Scandium properties.
Stewart Lake covers a 7,767-hectare area and contains several anomalous areas. The property is considered prospective for uranium mineralisation that measures about 500m wide and 2km in strike.
Strange Lake covers a 1,433-hectare area and minimal exploration has been carried out. Yet, the company notes there are several anomalous mineral assays recorded.
The Nanuk and Crater Lake property make up the remaining 16,100 hectares. The property is considered prospective for uranium, REE, and scandium mineralisation within the area.
NewPeak Metals is an Australia-based mineral resource explorer focused on gold and critical minerals.
As of 31 December 2023, the company had $40,000 in cash and cash equivalents at hand, according to its latest quarterly report.
Write to Aaliyah Rogan at Mining.com.au
Images: NewPeak Metals
