Prismo Metals (CSE:PRIZ) has announced that a definitive agreement has been signed with Infinitum Copper (TSXV:INFI) for Prismo to acquire 75% of the Hot Breccia porphyry copper-skarn project in the Arizona Copper Belt. Hot Breccia includes 227 mining concessions located roughly four kilometres from the historic Christmas mine.
The company believes that the Hot Breccia property could contain high-grade skarn mineralization that is similar to the mineralization mined at the Christmas mine. It is using the historical information which recorded production of roughly 481.6 Mlbs of copper from 20.2 M tons at a grade of 1.2% Cu plus significant gold and silver to only guide and plan for future exploration.
To acquire the 75% interest in the Hot Breccia property, Prismo will pay $350,000 in cash and issue 500,000 common shares of Prismo Metals to Infinitum Copper. It will also assume some earn-in obligations of Infinitum under the Option Agreement with Walnut Mines.
Hot Breccia is already subject to an Option Agreement between Walnut Mines and Infinitum. Walnut Mines has provided data from drill holes completed by Bear Creek Mining, which is a subsidiary of Kennecott Copper Co., on a portion of the property back in the 1970s and 1980s. Several high-grade mineralization intercepts were reported, although that data is not NI 43-101 compliant.
Once the earn-in obligations have been satisfied and the option is exercised, Prismo and Infinitum will enter a new joint venture agreement where Prismo will become the initial operator of the project. At that point, the company will have acquired 75% of the property and will be subject to a 2% NSR royalty to Walnut Mines.
Dr. Gibson, President and CEO of Prismo, commented in a press release: “This acquisition agreement gives Prismo exposure to a copper system in the world-class Arizona copper belt with possible precious metal values. We anticipate beginning exploration work at the project quickly and expect to be drilling before the end of the year. Prismo has enough cash on hand to meet property payments and minimum exploration expenditures on all its projects, including Hot Breccia, through 2024.”
Earn-In Obligations to Walnut:
|As at||Work Commitments||Property Payments||Share Payments|
|January 31||To be satisfied by Prismo||To be made by Prismo||To be made by Infinitum|
Drill hole data for holes from the Kennecott program
|Hole||Easting||Northing||Elev. (ft)||Azim||Incl||Depth (ft)|
Coordinates in UTM NAD27 estimated from drill logs.