Inomin Mines signs earn-in deal for JV with Sumitomo

Inomin Mines Inc. [TSXV: MINE] has entered into a non-binding term sheet with Sumitomo Metal Mining Canada Ltd. dated November 1, 2024, which sets forth the key terms of a proposed earn-in and joint venture agreement (definitive agreement) to be entered into on the company’s Beaver-Lynx project in south-central British Columbia. The non-binding term sheet provides Sumitomo the right to earn up to an 80% interest in the project’s mineral claims by incurring a minimum of $8 million in exploration expenditures.

Key term sheet terms: Sumitomo granted an initial option (phase 1) over two years to earn a 60% interest in the project by incurring minimum exploration expenditures of $3 million.

Sumitomo granted a second option (phase 2) over three years to earn an additional 20% interest in the project by incurring minimum exploration expenditures of $5 million.

Inomin will be the operator of the project during at least the initial earn-in period, entitling the company to a fee equal to 10% of project exploration expenditures.

Inomin will be reimbursed by Sumitomo a portion of exploration expenditures the company incurs at the project during term sheet exclusivity period, provided a definitive agreement is entered into.

Sumitomo is conducting due diligence on the claims comprising the project. Upon successful due diligence, the parties will work towards finalizing and executing a definitive agreement.

John Gomez, president of Inomin, commented: “We are delighted to partner with Sumitomo, a leading international resource project developer and producer, to advance Beaver-Lynx. With Sumitomo’s involvement, we believe Beaver-Lynx’s large mineral resource potential will be realized, and the property could develop into another major mine in a mineral and infrastructure-rich district.”

The Beaver-Lynx property comprises 25,350 hectares and is ideally located in south-central British Columbia, 50 km from the city of Williams Lake and adjacent to Taseko Mines’ Gibraltar mine project, one of the largest open-pit copper mines in Canada. Beaver-Lynx is easily accessible by good all-season roads and is close to hydro-electric power, as well as active railway lines.

The company owns a 100% interest in the project with no royalties. Exploration including drilling has demonstrated the project hosts large volumes of nickel. Given positive initial drilling and metallurgical test results – as well as district-scale size – the Beaver-Lynx project has the potential to be a major nickel source.