Grid Metals has signed a definitive joint venture agreement (JVA) with Avenir Minerals, a subsidiary of Agnico Eagle Mines, to develop the Falcon West Cesium Property in south-eastern Manitoba, Canada.
Under the agreement, Avenir will acquire an initial 15% interest in the property and resulting joint venture (JV) for C$3.75m in cash, with Grid Metals retaining an 85% stake and acting as operator.
The arrangement includes an option for Avenir to raise its interest to 30% following either the completion of a preliminary economic assessment or the adoption of a mine plan.
The phase two option would be exercised at a price set at 40% of the property's net present value, multiplied by 15%, calculated with an 8% annual discount rate. Both parties will contribute to project costs based on their respective interests.
Avenir has also secured an option to subscribe for up to 19.99% of Grid's issued and outstanding common shares.
This equity option would be available for 90 days, starting 15 days after the resource estimate announcement.
A joint management committee will oversee the project, with representation and voting by both Grid and Avenir in proportion to their interests.
Grid Metals CEO and president Robin Dunbar said: "We welcome Avenir as a project JV partner and major shareholder. We see this transaction as a positive development for our shareholders and other stakeholders of Grid.
"Avenir's mine development and operating expertise and financial strength is an endorsement of the potential of Falcon West, the cesium market and the Grid team."
The Falcon West property covers 124 unpatented mining claims approximately 130km east of Winnipeg.
The JV intends to establish a resource estimate for Falcon West based on recent drilling, and to pursue further metallurgical and ore sorting testwork.
Pollucite from the site, typically containing 30–40% cesium oxide, is a key feedstock for the cesium chemicals industry.
"Grid Metals, Avenir sign JVA for Falcon West Cesium in Manitoba" was originally created and published by Mining Technology, a GlobalData owned brand.
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