Just a few days ago, Prismo Metals (CSE: PRIZ, FRA: 7KU, WKN: A2QEGD) announced its intention to increase its stake in the Hot Breccia project in southern Arizona from 75% to 95%. This transaction has now already been completed. As the company has also secured an irrevocable option from the seller for the remaining five percent of the project, Prismo Metals now has the opportunity to become the sole owner of this highly interesting copper project at any time.
For Prismo Metals, the acquisition of the additional 20 percent stake in Hot Breccia is of crucial importance, as in the past it was the unclear ownership structure that deterred investors and potential financiers. Investors and financiers prefer to negotiate with a single owner rather than with a group of individuals or companies that own a project.
This uncertain ownership structure is now history, and Prismo Metals has a clear mechanism in place to secure full ownership of Hot Breccia. This resolves all uncertainties and concerns on the part of potential lenders regarding potential disagreements among the owners of Hot Breccia, and from now on, it is perfectly clear that Prismo Metals alone will determine how the project will develop.
Prismo Metals now intends to accelerate the development of Hot Breccia
Prismo’s management remains firmly committed to vigorously advancing Hot Breccia. The existing option agreement with Walnut Mines LLC, the owner of the Hot Breccia claims, was recently extended. It contains certain obligations that become due once specific milestones have been reached.
Following clarification of the ownership structure, the focus is now on planning the drilling planned at Hot Breccia in detail and then carrying it out. Prismo Metals considers this to be particularly promising, as Hot Breccia is considered one of the most exciting copper exploration opportunities within the Arizona Copper Belt, at least in this US state, according to the company.
Walnut Mines will actively support Prismo Metals in the development of Hot Breccia
Prismo Metals is being supported in its efforts to unearth this treasure still hidden in the ground by its partner Walnut Mines. Dr. Linus Keating from the Walnut Mines management team was enthusiastic about the latest development. He stated, “Walnut Mines strongly supports all measures that bring Hot Breccia closer to a serious drilling program.”
Walnut Mines is confident that this goal can be achieved within the current year and considers the Hot Breccia project to be one of the best copper exploration opportunities in North America.
This is good news for shareholders invested in Prismo Metals, as the way is now clear to develop a copper property located in close proximity to Freeport McMoRan’s Miami-Inspiration mining complex, BHP’s San Manuel mine, and the Resolution deposit being jointly developed by Rio Tinto and BHP.
