Junior explorer Odin Metals (ASX: ODM) has inked a deal with the Canadian subsidiary of Glencore to earn a 50% stake in the mining giant’s Sturgeon Lake base metal properties in Ontario.
Under an earn-in option agreement, Odin will be required to spend a minimum of C$6.67 million (A$7.04 million) on the properties and associated assets over a three-year period in order to enter into the 50:50 joint venture, with Glencore remaining as the operator.
In addition, Odin has offered Glencore the option to acquire a 50% interest in its own existing properties, located adjacent and nearby.
Under this agreement, Odin will grant Glencore the option to acquire up to 50 million shares in Odin (exercisable at A$0.40 per share) for a one-year period, dating from the exercise and closing of the earn-in deal.
Sturgeon Lake
The Sturgeon Lake district, located on the historical Mattabi zinc-copper trend, is known to be prospective for copper, zinc, silver and lead.
These deals will effectively consolidate and increase Odin’s exposure in the district from 22 square kilometres to more than 200sq km.
The project area offers brownfield and advanced exploration opportunities for volcanogenic massive sulphide style mineralisation, with historical gold and base metals production occurring intermittently from the start of last century to the early 1990s.
According to Odin, the aggregate production within the consolidated properties totals 19.8 million tonnes at 8.5% zinc, 1.06% copper, 0.91% lead and 120 grams per tonne silver, extracted from five mines between 1972 and 1991.
Odin executive director Jason Bontempo said the company was excited to consolidate coverage of the mineralised Mattabi trend.
“The agreement also provides Odin exposure to a wealth of exploration data and knowledge specific to the Sturgeon Lake district, and a working partnership with a producing partner in Canada with both development capabilities and exposure to down-stream smelting and refining facilities,” he added.
Odin also pointed out the properties are located 50km north of the Trans-Canada highway and are accessible by an all-weather sealed road.
