Frontier Energy (ASX:FHE) has completed the divestment of its Pick Lake Zinc Project to Total Metals Corp (TSX-V:TT) for a total cash consideration of $2.25 million, as the company shifts its focus to core assets.
The acquisition includes Total Metals acquiring Frontier Energy’s wholly owned subsidiary, Pick Lake Mining, with the sale package completed under a purchase and sale agreement.
The previous owner retains a 2% net smelter return royalty on the project, which Total Metals can buy 50% of back for C$1 million ($1.02 million).
Total Metals CEO Tyler Thorburn says the Pick Lake Project is “one of the absolute best, high-grade critical mineral assets in the world”.
“Pick Lake resides in the prolific mining jurisdiction of northwestern Ontario and aligns with our goal of acquiring and advancing spectacular Canadian high-grade assets in tier-one mining jurisdictions,” Thorburn says.
Total Metals Executive Chairman Michael Dehn explains that the project has “phenomenal” exploration upside.
“When you look at the sheer scale of this expansive land package and the concentration of historical mineral occurrences that have barely been scratched by modern techniques, the potential for new discoveries is incredibly exciting,” Dehn says.
“We have a robust pipeline of historical targets with all the right geological signatures ready for follow up.”
The Pick Lake Project comprises 75 claims and a mining lease held over 5,260 hectares, located within the Winston Lake greenstone belt.
The project has a calculated indicated resource of 1.78 million tonnes @ 19.2% zinc, 0.9% copper, 0.3 grams per tonne gold, and 36.1g/t silver, and an inferred resource of 270,000 tonnes @ 16.4% zinc, 1% copper, 0.3g/t gold, and 38g/t silver.
Trading Economics reports zinc to be priced at US$3,425 per tonne, representing a 32.16% increase year-over-year.
Frontier Energy says the company is solely focused on developing its Waroona Renewable Energy Project in Western Australia.
Write to Maddison Elliott at Mining.com.au
Images: Frontier Energy
