Casa Minerals Inc. (CASA:TSX.V; CASXF:OTCMKTS; 0CM:FSE) announced in a news release it signed an option agreement to allow a private company to explore Casa's 100%-owned Keaper polymetallic project in British Columbia in exchange for an earned interest in it. The project is located about 20 km north of Terrace, not far from Casa's flagship Pitman project.
"This agreement is entirely nondilutive for Casa shareholders," Casa President and CEO Farshad Shirvani said in the release. "It allows us to be carried in an aggressive exploration program on Keaper, furthering the successful work of the past several years."
"We are especially excited about following up on the recent surveys that returned high values for silver, zinc and copper. With a drill permit in place from late 2018, we look forward to an active season at Keaper," Shirvani added.
The company noted that rock and soil geochemical sample surveys at Keaper have returned assays as high as 3.93 g/t gold, 1,512 g/t silver, 9.90% copper and 13.9% zinc. The 2018 field program "confirmed and extended the property's 'Nelson' prospect and identified a new 'Lucky Crew' prospect area. The various mineralized prospects have been partially defined in an area that extends about 3.2 kilometers northwest-southeast."
"There are numerous strong targets at Keaper," said Shirvani. "The focus for 2019 will be refining the drill targets with the results of an airborne survey that is scheduled to be flown this winter. Following that we are encouraging our new partner to do further exploration such as drilling."
The agreement terms afford the private company the right to earn up to a 60% interest in Keaper over four years' time. To do so, it must spend an aggregate of $4 million on exploration there, pay an aggregate $550,000 to Casa and issue 2.5 million shares to Casa—all in tranches on a specific schedule. Both entities will share any exploration tax credits.
Should the project be advanced to commercial production, Casa would retain a 1.5% net smelter royalty, 0.5% of which the private company could purchase for $500,000.
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