ArcWest inks Todd Creek option with Freeport-McMoRan, British Columbia
ArcWest Exploration Inc. [AWX-TSXV; SJRNF-OTC] has entered into an earn-in agreement with Freeport-McMoRan Mineral Properties Canada Inc. to advance ArcWest’s Todd Creek copper-gold project, located in northwest British Columbia’s Golden Triangle.
Arcwest’s 100%-owned Todd Creek project adjoins Newcrest Mining’s Brucejack mine property. In March 2022, Newcrest acquired Pretium Resources and its Brucejack mine in a transaction valued at CAD$3.5 billion. The Todd Creek project is also situated approximately 40 km southeast of Seabridge Gold’s giant KSM-Iron Cap porphyry Cu-Au deposits and Tudor Gold’s Treaty Creek Au-Ag-Cu project. Collectively, the KSM-Iron Cap and Treaty Creek deposits represent one of the largest Au-Cu concentrations in North America. Contained metal within Proven plus Probable Reserves at KSM-Iron Cap total 38.8 million ounces (oz) Au, 183 million oz Ag and 10.2 billion pounds of copper. Tudor has released a measured plus indicated resource estimate for Treaty Creek totaling 17 million oz Au and 93 million oz Ag (www.tudor-gold.com). A technical presentation for the Todd Creek project is available for download here.
Tyler Ruks, President and CEO of ArcWest, commented, “ArcWest looks forward to advancing our Todd Creek project in partnership with Freeport, one of the world’s largest copper miners and a team with a track record of global copper-gold discoveries that have proceeded to mine development. ArcWest’s Todd Creek project is host to one of the largest underexplored copper-gold systems in BC’s Golden Triangle, and Freeport’s endorsement of the project is a testament to its potential for hosting a world class copper-gold deposit. ArcWest is in discussions with multiple mining companies regarding potential earn-in agreements for our additional copper-gold projects.”
Under the terms of the earn-in agreement, Freeport has a two-stage option to earn up to an 80% ownership interest in the Todd Creek project over 10 years.
To earn an initial 51% interest, Freeport must fund CAD$20 million of work expenditures over five years and make staged cash payments to Arc\West totaling CAD$900,000. ArcWest will be the operator during the initial earn-in period.
Upon Freeport earning such 51% interest, it can elect, at its sole discretion, to earn an additional 29% ownership interest in the Todd Creek project (for a total 80% interest) by sole funding a further CAD$30 million within the following five years and make staged cash payments to Arcwest totaling CAD$750,000.
Once Freeport has finalized its earned ownership interest at either the 51% or 80% level, each party will be responsible for funding its pro rata share of project costs on a 51:49 or 80:20 basis.
Arcwest Exploration is in possession of seven 100%-owned copper-gold projects throughout BC’s premier porphyry copper-gold districts. These include ArcWest’s Todd Creek and Oweegee Dome projects, which are two of the largest and most prospective land positions for copper-gold exploration in BC’s prolific Golden Triangle.