(Alliance News) - Panther Metals PLC on Friday said it has agreed to a purchase option over 35 single-cell mining claims in Ontario, Canada.
The Canada-focused mineral exploration company said the option allows it to acquire the claims for CAD100,000 in cash, about GBP59,000.
It said the claims cover a 7.25 square kilometre area and enlarge its Awkward Prospect area eastwards, extending the Obongo project area to 292.25 square kilometres.
In addition to the cash consideration, Panther will grant a 2% net smelter return royalty to the vendors, which it can reduce to a 1% royalty via a CAD1.0 million buy back.
Panther said that in order to complete the deal, it will have to have carried out exploratory drilling with a minimum expenditure of CAD300,000 over a three-year option period, with CAD50,000 spent by the one-year anniversary of the purchase option grant.
It noted it will pay CAD15,000 for the purchase option, with a further CAD15,000 due in a year's time.
Chief Executive Darren Hazelwood said: "The Awkward location on Obonga has already generated industry interest and strengthening our position makes strategic sense as we look to accelerate our growth in 2024. This claim purchase agreement extends the coverage of ground prospective for critical minerals eastwards from the Obonga Project's Awkward Prospect."
Panther shares were up 13% to 3.90 pence each on Friday morning in London. The stock is down 18% over the past 12 months.
By Harvey Dorset, Alliance News reporter
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Panther Metals (PALM)