London-listed natural resource project generator Cloudbreak Discovery Plc (LSE: CDL) has confirmed that Canadian mining and exploration company Norseman Silver Inc (TSX-V: NOC) has fulfilled its obligations under the option agreement the two companies signed two years ago.
Under the terms of the agreement, Cloudbreak Discovery is entitled to a 2% net smelter royalty from Norseman Silver’s Caribou copper and silver project located in British Columbia.The Canadian mining company has paid CAD 80,000 in aggregate and has issued 2,750,000 common shares to Cloudbreak. Norseman Silver has expended CAD 225,000 on the property.
An exploration programme on the Caribou project conducted by Hardline Exploration Corp. last year showed positive results including 45 rock samples which yielded assay results greater than 1% copper.
The soil geochemistry defined areas with higher values for copper, silver, lead and zinc within the NH and Caribou West targets.
Cloudbreak Discovery has exposure to multiple projects
The cooperation with Norseman Silver is one of a number of projects under Cloudbreak’s cap. As a ‘prospect generator’ the company sources and transacts on mineral properties involving a range of metals including gold, helium, copper and other base and minor metals. The company builds value by evaluating and acquiring quality projects with a particular focus on resources key to the energy transition.
The projects are developed and managed by an experienced team and the business model allows the company to withstand the cycles of natural resources investing. It is only one of two prospect generators listed in London and follows a business model that is well established in Canada’s mining rich environment but is relatively new in the UK.
“It is great to see our model working successfully and have one of our partners complete their option. The royalty and share position that Cloudbreak retains will continue to provide exposure to the future upside of the property and allow us to pursue new ideas as we generate them,” said Kyler Hardy, president and CEO of Cloudbreak Discovery.
Cloudbreak Discovery has been busy over the last few months as it advances a number of projects.
In April Cloudbreak staked a new gold, silver and copper project in central British Columbia in Canada called Foggy Mountain which added to the over 45,000 hectares already staked by the company. A month later the company signed a deal with G2 Energy Corp. (CSE: GTOO) to provide a portion of the financing needed to acquire the Masten Unit Energy in Texas’ Cochran County in exchange for a 3.25% overriding royalty interest in the project.
In June the company hired airborne surveyors Precision GeoSurveys to conduct a high-resolution magnetic survey from a helicopter overflying Cloudbreak’s tenures in northwestern BC. The survey of its tenures, namely Rizz, Icefall and Atlin West, is being financed by Power Group Projects Corp (TSX-V: PGP), while Cloudbreak Discovery is wearing the costs of the Northern Treasure survey. Apart from its prospects in CanadaCloudbreak Discovery is also involved in several geographically diverse projects ranging from Serbia to Namibia.
Following today’s news Cloudbreak Discovery shares lifted 1.88%. They are trading 54.28% higher year-to-date.
Listen: Podcast with Kyler Hardy, CEO of Cloudbreak Discovery
