Churchill Resources Inc. [TSXV-CRI] is pleased to announce that it has entered into a definitive option agreement with Altius Resources Inc. to acquire a 100% undivided interest in certain mining claims comprising the Florence Lake Ni-Cu-PGE property in central Labrador, near the coastal community of Hopedale and 175 km south of the Voiseyâ€™s Bay mine. The Florence Lake Property is host to several Raglan-type ultramafic volcanic-hosted massive and disseminated sulphide nickel showings, and was last explored by Falconbridge between 1990-1997, during which time approximately 6,250m of drilling in 45 shallow holes were conducted, with drill core present on the property for relogging and sampling.
The project is comprised of three map-staked licenses in two blocks, with the northern Florence Lake Block comprising Licenses 027520M (50 claims) and 032167M (151 claims) totaling 5,025ha or 50.25km2. The southern Seahorse Lake Block is comprised of license 032231M containing 172 claims which cover 4,300ha or 43km2. These licenses require $78,139.00 in assessment work during the current year.
Under the terms of the Option Agreement, the Company shall have the exclusive option for a period of 24 months to acquire an undivided 100% ownership interest in the Florence Lake Property by issuing 1,373,946 common shares to Altius, incurring a minimum of $1,500,000 in exploration expenditures within 24 months, engaging in an equity financing not less than $4m, issuing up to 7m shares to Altius not to exceed $19.9% ownership post financing, providing Altius with a nomination right to elect one nominee to the board of directors of Churchill and a pre-emptive right to participate in future equity financings of Churchill.
Following the date that the option is deemed to have been exercised in accordance with its terms, Churchill will issue and grant to Altius a 1.6% gross sales royalty on any minerals produced from the claims comprising the Florence Lake Property.
Shares of Chruchill last traded at $0.18 cents.