Cloudbreak Discovery Plc (LSE: CDL), the natural resource project generator, has entered into an agreement with Moonbound Mining over the Yak Project, in northwestern British Columbia, for gold mineralisation specifically.
The project is located 80 kilometres south of Whitehorse, in Canada’s Yukon Territory, immediately south of the Yukon border and east of the Alaskan border in northwestern British Columbia, covering an area of 4,020 hectares. Cloudbreak Discovery said the project was staked based on historic surface mineral occurrences, regional geology and remote sensing data indicating new exposures from glacial recession.
Cloudbreak Discovery says it has recently completed a regional targeting compilation and Yak is one of the key pieces of ground identified in this initiative.
Cloudbreak Discovery: a mining project origination engine
The Yak Project is underlain by the southern margin of the Bennet Lake Caldera, with an eroded structural dome and thick successions of pyroclastic and epiclastic Eocene age, Skukum group volcanic rocks. Cretaceous coast plutonic suite granodiorites and quartz monzonites are noted in the area as well. Cloudbreak reckons that thte geological setting is favourable for low-sulphidation epithermal gold-silver veins and mesothermal lode gold.
Under the terms of the deal, Moonbound will issue Cloudbreak with 2,700,000 common shares and make aggregate cash payments to Cloudbreak of CAD $145,000 over a three-year period.
Moonbound is committed to spend up to CAD $700,000 in exploration expenditure on the property, with at least CAD $150,000 to be spent prior to the second anniversary of Moonbound listing on an exchange.
- READ: Power Group Projects issues 8m shares to Cloudbreak Discovery for Atlin West gold / silver project
Moonbound Mining must enter public transaction within six months
As a condition of the agreement, Moonbound is obliged to enter into a public transaction within six months of the effective date of the agreement with Cloudbreak Discovery. Upon completion of these option agreement obligations, Cloudbreak will transfer 100% interest in the property to Moonbound.
Cloudbreak will retain a 2% net smelter royalty which is subject to a buy down provision where Moonbound may, at its discretion, repurchase half of the royalty for CAD $1,500,000.
“Our partnership with Moonbound represents a formalisation of longstanding relationships with the Cloudbreak team and we are looking forward to the collaboration as much as the exploration itself,” explained Kyler Hardy, CEO of Cloudbreak Discovery. “The rocks in this area continue to yield new and exciting mineralisation. We are optimistic that the application of modern exploration techniques, coupled with the expertise across both teams, will bring the best chance of success at this project.”
Cloudbreak Discovery has focused historically on opportunities in Canada, largely because it is a pain free, Tier 1 mining jurisdiction. It tends to pursue a low cost, high value creation model that draws on partner balance sheets and technical teams. It carries out extensive research on potential projects before they even start discussions with possible partners.
Listen: Podcast with Kyler Hardy, CEO of Cloudbreak Discovery