The transaction for the Robitaille and Cooke mines, which produced copper and gold respectively, increases Power Ore’s Opemiska Copper Complex from 797 hectares to over 9,800 hectares.
The new land package covers nearly 12 kilometres of a key structural feature known to control regional mineralization known as the Gwillim fault, boosting the property’s exploration potential.
"This is an important acquisition as it gives us 12 kilometres of coverage along the Gwillim Fault while adding two past producing mines in the Robitaille and Cooke, the latter of which produced high grade gold,” Power Ore’s CEO Stephen Stewart said in a statement Friday.
“We will continue to develop resources in and around the former producing mines, as we have with Springer, but the addition of 9,000 hectares opens us up for additional discovery targets, many of which have already been identified for follow up.”
Power Ore’s flagship Opemiska project now houses four potential deposit types that require follow up studies, the company told shareholders. The area around the Cooke mine hosts gold-rich veins as well as volcanic massive sulphide-tupe mineralized zones, the firm said.
Power Ore will focus on ascertaining the correct orientation of the veins in order to boost its chances of making a discovery within the copper-gold system. Further review of all past mineralized drill intersections is warranted as they could represent major new Opemiska-type veins, the company told investors.
The transaction sees Power Ore issue 500,000 shares and 500,000 warrants priced at C$0.10 per share to 2736-1179 Quebec Inc within five days of the deal going into effect.
The deal is structured so that each year for five years, Power Ore will issue more shares and warrants to 2736-1179 Quebec Inc at prices ranging from C$0.15 to C$0.25 for the first three years, which also sees the explorer pledge to spend a certain amount on work obligations and pay the seller a total of $150,000.
In years four and five of the deal, Power Ore will issue 2736-1179 Quebec Inc 500,000 shares only each year, incur $1.9 million in work obligations (with the bulk of the expenses coming in year five) and pay a total of $300,000 to the seller.
Opemiska lies near the town of Chapais, Quebec within the province’s prolific Chibougamau region.
The project consists of the past-producing Springer and Perry mines, which were previously owned and operated as underground mines by Falconbridge. Power Ore is reinterpreting this past underground operation as a high-grade open pit copper project.
Shares of Power Ore climbed 8.3% on Friday morning to trade at nearly C$0.07.
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