Dunnedin Ventures Inc (CVE:DVI) (OTCMKTS:OCPFF) said Monday that it has signed a letter of intent to acquire 100% of the Mohave copper-molybdenum-silver porphyry project in Arizona from Bluestone Resources Inc.
Vancouver-based Dunnedin said in a statement that the acquisition of the Mohave project would represent a strong addition to its copper portfolio in North America, which includes its 100%-owned Trapper and MPD copper porphyry projects in British Columbia.
“Mohave enhances Dunnedin’s copper portfolio with a US-based asset located in a prolific copper mining district,” Dunnedin President Claudia Tornquist said. “Investor sentiment in the United States favors domestic resource production. Developing a copper project at Mohave is anticipated to have strong appeal.”
She added that Mohave is an underexplored property with nearby producing mines and excellent infrastructure.
Previous drilling, according to Tornquist, has confirmed porphyry-style copper-molybdenum-silver mineralization. Significant copper-in-soil targets have been historically defined and remain untested, she said.
With a total of three copper assets in British Columbia and Arizona, Dunnedin said it will now be able to drill year-round.
Dunnedin’s first drill program will be at its MPD project in southern British Columbia in early 2019, and preparatory work for a drill program at Mohave is slated for later in the year, according to the company.
The nonbinding letter of intent with Vancouver-based Bluestone Resources is subject to the execution of a definitive agreement and other customary conditions including the approval of the TSX Venture Exchange.
Consideration, according to Dunnedin, includes:
- C$50,000 in cash and C$100,000 in Dunnedin shares upon closing
- 500,000 shares upon the public disclosure of a resource for the project compliant with standards
- 500,000 shares upon the public disclosure of a preliminary economic analysis
- 500,000 shares upon the public disclosure of a prefeasibility or more advanced study for the project
- A 0.5% net smelter returns royalty
Management will provide further information on 2019 exploration plans at Mohave as the project database is analyzed.
Separately, Dunnedin has granted an aggregate of 1.7 million stock options to management, directors and consultants of the company, exercisable at C$0.075 per share for a period of five years.
Shares of Dunnedin slipped C$0.01 to C$0.07 in Monday’s Canadian trading.
Contact Dennis Fitzgerald at [email protected]