CAD 2,075,000 in Payments Due
Storm Exploration Inc. (TSX-V: STRM; FRA: L84) has successfully renegotiated and significantly improved its earn-in agreement for the acquisition of the promising Miminiska and Keezhik gold projects in Ontario. The seller, Landore Resources Canada Inc., has agreed to extend the deadlines for the remaining payments under the option agreement to acquire a 100% interest in the properties by up to 18 months.
For the complete acquisition of both projects, payments totaling CAD 2,075,000 are due in three tranches, with Storm required to pay CAD 787,500 in cash and having the option to pay up to CAD 1,287,500 in shares at its discretion. The earn-in process will thus start on September 20, 2024, with a payment of CAD 262,500 plus CAD 250,000 in cash or shares. A second tranche follows on March 20, 2025, with CAD 250,000 due in cash or shares. The final and largest payment of CAD 525,000 in cash and CAD 787,000 in cash or shares would then be due on March 20, 2026. The number of Storm shares to be issued in each case will be determined by the volume-weighted 30-day average price prior to the payment date.
Unlike in the previous earn-in agreement with Landore, the Storm shares to be issued this time are subject to a voluntary pooling agreement. Under this agreement, Landore may sell 20% of each share tranche upon issuance (subject to the statutory holding period), a further 40% on the first anniversary of the share issuance, and the remaining 40% on the second anniversary of the share issuance. Additionally, Storm has the option to find a buyer if Landore wishes to sell shares. If Landore acquires direction or control over 10% or more of Storm’s issued shares, it has the right to appoint a director to the board, subject to TSXV approval.
Bruce Counts, the company’s President and CEO, stated: “I would like to thank Landore for working with Storm to revise the agreement for Miminiska and Keezhik in a way that aligns attractive commercial terms for Storm investors with value preservation for Landore.”
The Miminiska, Keezhik, and Attwood properties are located in the traditional territory of the Eabametoong First Nation, with whom Storm has signed an exploration agreement. The property projects are situated in the Miminiska-Fort Hope Greenstone Belt, approximately 350 kilometers north of the city of Thunder Bay in Ontario. Each project has the potential to host a multi-million ounce orogenic gold deposit. Additionally, the Attwood project also has the potential to host a significant base metal deposit.
The Miminiska property is the company’s main focus and hosts drill-confirmed, high-grade gold mineralization in two primary prospecting areas: Miminiska and Frond (see Figure 1). Historical surveys yielded 5.75 g/t Au over 20.84 m* and 13.95 g/t Au over 5.32 m*, with mineralization contained in a banded iron formation and associated shear zones.
Conclusion: With the new timeline and the option to pay the lion’s share of payments at the end and in the form of shares, Storm has a new opportunity to successfully complete the earn-in for the two promising gold-base metal projects Miminiska and Keezhik. Particularly the fact that Landore has agreed to a voluntary pooling agreement is intended to signal to future Storm investors that Landore is acting fairly and sees itself as a partner with a longer-term orientation. In the event of exploration success, a stake in Storm could become a significant asset for Landore, as the Miminiska project in particular brings all the characteristics one could wish for in a banded iron formation gold project. A model for the successful operation of such a mine is provided by the Musselwhite Mine, operated by Newmont about 300 kilometers to the northwest. Despite fly-in-fly-out of personnel, it is considered one of the most profitable mines in the group.
plans to announce its plans for financing the earn-in as well as a drilling program to expand the known mineralization on the Miminiska project in the coming days.
