Aston Bay Holdings has forged a deal with Emerald Geological Services (EGS) to secure an 80% stake in the Epworth Property, situated in Nunavut, Canada. This pivotal arrangement mandates Aston Bay to funnel a minimum of C$3 million ($2.22 million) into exploration efforts over the next four years. Nestled about 80km southeast of Kugluktuk in the Kitikmeot Region, this property is distinguished by a 74km stretch rich in copper, silver, and zinc mineralization, enhanced by traces of gold, cobalt, and lead.
Thomas Ullrich, CEO of Aston Bay, underscored the geological promise of the property, likening its potential to the famed Central African Copper Belt. Leveraging Aston Bay's insights from their Storm Project, the company is well-positioned to spearhead exploratory success at Epworth.
As part of the agreement terms, a cash payment of C$50,000 ($37,000) to EGS is also outlined. Operational oversight during the agreement term falls to EGS, with a technical committee established to greenlight all expenditures, ensuring a united approach to the property’s development.
Fulfilling the investment obligation triggers the formation of an 80/20 joint venture (JV) between Aston Bay and EGS. A subsequent definitive agreement will replace the initial binding letter, setting forth the JV's framework.
EGS's participation extends up to the finalization of a bankable feasibility study, with its input thereafter compensating future revenue from the property. Moreover, Aston Bay retains an option to reacquire half of this royalty for $1.5 million within two years post the onset of commercial production.
Bruce MacLachlan from EGS conveyed excitement over the collaboration with Aston Bay, pointing to the property’s capability to host substantial base metal deposits within an underexplored sedimentary belt. This agreement marks a significant milestone towards realizing the Epworth Property's vast potential.
