Brixton teams up with Friedland company on Hog Heaven project

“We see high potential for further discovery at Hog Heaven. We believe that the past producing Flathead mine, where Anaconda Copper historically produced high-grade direct-shipping silver-gold ore, is just one part of a much larger precious metals and copper system,” Graham Boyd, principal geologist of HPX, commented.

Under the JV agreement, High Power can earn a 51% interest in the project by making a total of $4.5 million in cash payments and incurring $15 million in exploration expenditures.

It may earn an additional 24% interest (for a total of a 75% interest) by incurring an additional $25 million in exploration expenditures, bringing total value of the transaction to $44.5 million.

Should HPX choose to complete only the first stage of earn-in, it will transfer a 2% interest in the JV to Brixton, such that the interests are 49% HPX and 51% Brixton, and Brixton shall retain a right of first offer to purchase all of HPX‘s interest.

Furthermore, Friedland himself has also agreed to a C$2 million private placement financing into Brixton, with proceeds being used to eliminate 1.5% of the existing NSR royalty on Hog Heaven held by Pan American Silver (TSX: PAAS).

Shares of Brixton Metals surged 9.7% by midday Tuesday following news of the company teaming up with Friedland. The Vancouver-based miner has a market capitalization of C$58.9 million.

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