Up to CAD 15.45 million total volume
Copper and gold explorerBrixton Metals (TSX-V BBB / WKN A114WV) has a major project, the huge Thorn property, which is so promising that the world’s largest mining group BHP took a substantial stake in the Canadian company some time ago. But the other projects of CEO Gary Thompson’s company are obviously also of high quality considering the big names that have secured the right to explore the properties.
For example, Robert Friedland’s Ivanhoe Electric (market capitalization CAD 1.98 billion) has been exploring Brixton’s Hog Heaven project for some time. The joint venture has a volume of USD 44.5 million and includes regular cash payments to Brixton!
Eldorado Gold secures option on Atlin Goldfields
And the company has now been able to secure a renowned partner for the Atlin Goldfields project, too. Canadian gold producer Eldorado Gold (market capitalization around CAD 4.66 billion) is prepared to invest a considerable sum to investigate the property for gold deposits!
Brixton has just announced that it has entered into a definitive agreement with the gold major granting Eldorado the right to acquire 100% of the 579 square kilometer Atlin Goldfields project in British Columbia.
The agreement, which has a term of five years, stipulates that Eldorado Gold will invest CAD 1 million in the exploration of the property each year from September 30, 2024 and will have already invested CAD 350,000 in initial activities at Atlin Goldfields before that already. In total, the gold producer will spend CAD 5.35 million on exploration until the eventual acquisition of the 100% stake!
Regular cash payments to Brixton
But that’s not all, as Eldorado will also transfer CAD 250,000 in cash to Brixton each year from September 30th, up to an amount of CAD 1.1 million. Even before that, within ten days of signing the agreement, CAD 100,000 will flow to the smaller partner.
Should the industry giant decide to acquire 100% of Atlin Goldfields at the end of the agreed period, a further CAD 7 million in cash will be due! However, Brixton can decide whether it would prefer to receive half of this amount in Eldorado Gold shares. In addition, Brixton will also receive a net smelter return (NSR) of 1.0% on the project at that time. However, Eldorado can buy back half (0.5%) of the NSR for a further payment of CAD 2 million before the start of commercial production.
In addition, should successful exploration on the gold project quickly materialize, Eldorado may elect at any time to accelerate payments or funding schedules for any requirements of the agreements.
Brixton will carry out the work at Atlin Goldfields within the agreed timeframe, with Eldorado approving all work programs and budgets. The Group will also closely support Brixton on environmental and social issues.
Conclusion: It speaks volumes for the quality of Brixton Metals' projects that, after BHP and Ivanhoe Electric, Eldorado Gold, as a third heavyweight in the commodities sector, is now interested in one of the properties. Especially in view of the difficult situation for many juniors on the commodities market, the deal is also of great benefit to Brixton. Not only can they invest CAD 1 million per year in the exploration of Atlin Goldfields, but when Eldorado takes over the project, they will also have collected a total of CAD 8.1 million and still hold an NSR of 1%. We are excited to see what the next exploration activities will bring!
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In accordance with §34b WpHG i (Germany) and §48f paragraph 5 BörseG (Austria) we would like to point out that clients, partners, authors and employees of GOLDINVEST Consulting GmbH hold or may hold shares in Brixton Metals and therefore a possible conflict of interest exists. Furthermore, we cannot rule out the possibility that other market letters, media or research companies may discuss the stocks we recommend during the same period. This may result in the symmetrical generation of information and opinions during this period. Furthermore, there is a consultancy or other service agreement between Brixton Metals and GOLDINVEST Consulting GmbH, which may give rise to a conflict of interest.
