Cloudbreak Discovery LSE:CDL, the widely followed mining project generator, has announced that it has entered into an option agreement on the Icefall Project with 1311516 BC Ltd. with the effective date being 7 March 2022. The Icefall Project is located approximately 90 kilometres south of Atlin, British Columbia and forms part of Cloudbreak Discovery’s Northwest Portfolio.
Cloudbreak Discovery said that several surface showings have been observed within the same geologic setting and structural corridor as the New Polaris and Tulsequah Chief projects which are targeting polymetallic mineralisation.
Icefall project represents underexplored opportunity
Cloudbreak Discovery is a specialist mining project generator – it sources new projects which it then develops with partner firms. Its Northwest Portfolio includes a number of interesting stakes across the western Canadian region with a wide range of different metal and mineral prospects.
“The Northwest Portfolio represents a great opportunity in an underexplored region of British Columbia,” said Cloudbreak Discovery CEO Kyler Hardy. “The region has historically had meaningful production; however, the area has not been subject to modern exploration techniques. We look forward to working closely with our partner to advance the Icefall project with the latest technology, in order to build a clearer geologic picture.”
The Icefall Project is underlain by Stuhini and Labarge Group volcanic and sedimentary rocks and is continuous along strike from Brixton Metals Corp’s Thorn gold-copper-silver project. Granitic intrusions have been mapped on the northern and southern bounds of the claim block, which covers 8,704 hectares.
The property is bounded between the Llewellyn fault to the west and King Salmon fault to the east, with several north-trending structures noted on the property. Several showings which require immediate follow up, include sample results of up to 35.5 grams per tonne silver and 0.5% copper.
Terms of the option agreement with 1311516 BC
To earn a 75% interest in the project, 1311516 BC will spend a total of CAD $700,000 over a three-year period in exploration expenditures on the property, with at least CAD $50,000 being spent prior to the first anniversary of the effective date. It will issue of 2,000,000 common shares in 1311516 BC to Cloudbreak’s subsidiary company Cloudbreak Discovery (Canada) Limited immediately.
1311516 BC will also make an aggregate of CAD $120,000 in cash payments to CDL of which CAD $25,000 is payable immediately, CAD $25,000 is due on the earlier of 1311516 BC entering into a definitive agreement for admission or trading of its shares on an established Canadian or U.S. securities exchange or two months from the effective date, CAD $25,000 is due on or before the first anniversary of the effective date and CAD $50,000 is due on or before the second anniversary of the effective date.
Upon completion of the option agreement’s terms both 1311516 BC and Cloudbreak will enter into a joint venture which will see each party responsible for its pro-rata share of expenditures on the project. Should either of the parties elect not to fund its pro-rata share of expenditures, its interest will be proportionally diluted down. If either of the parties are diluted under a 10% ownership interest in the project, its remaining interest will automatically convert in to a 2% net smelter royalty.
Listen: Podcast with Kyler Hardy, CEO of Cloudbreak Discovery
