Brixton Metals Corp. [BBB-TSXV; BBBXF-OTCQB] signed a binding heads of; agreement for a US$44.5-million earn-in and joint venture on its wholly-owned, road-accessible Hog Heaven Project with High Power Exploration Inc. (HPX). HPX is a privately owned mineral exploration and development company led by Chairman and CEO officer Robert Friedland. Concurrently, Friedland has agreed to a $2-million private placement financing into Brixton. The Hog Heaven Project is a silver-gold-copper-lead-zinc deposit with historical production located 55 miles south-southwest of Kallispell, Montana.
Graham Boyd, principal geologist of HPX, stated: “We see high potential for further discovery at Hog Heaven. We believe that the past producing Flathead Mine, where Anaconda Copper historically produced high-grade direct-shipping silver-gold ore, is just one part of a much larger precious metals and copper system. Our initial work programs at Hog Heaven will leverage our talented USA-based team of geoscientists and deploy the world-class Typhoon geophysical surveying technology to unlock new discoveries.”
Gary R. Thompson, Chairman and CEO of Brixton Metals, stated: “We are very excited to partner with HPX, a world renowned leading exploration and mine development group. Brixton welcomes legendary mining mogul Robert Friedland as a shareholder through a concurrent CAD$2 million investment in the company. This USD$44.5 million earn-in agreement highlights the high quality and significant potential of the Hog Heaven Project and is an endorsement of the work the Brixton team has been doing.”
HPX can earn a 51% interest in the Hog Heaven Project by paying US$4.5-million in cash and spending US$15 million on exploration. HPX may earn an additional 24% interest (for a total of a 75% interest) by spending an additional US$25 million on exploration. HPX will be operator.
Robert Friedland also agreed to invest CAD$2 million into Brixton. These funds will be used for cancellation of 1.5% of the existing 3.0% NSR held by Pan American Silver Corp.
Until a development decision is made, Brixton and HPX will fund operations pro rata.
The private placement for gross proceeds of CAD$2 million will have each unit priced at CAD$0.235 and will be comprised of one share and one warrant good to buy one Brixton share at C$0.35 for 36 months.