New Age Metals Inc. [NAM-TSXV; PAWEF-OTCQB] has signed a binding letter of intent with Avalon Development Corp., a company that is expected to provide acquisition and geological services to New Age Metals in Alaska.
The services to be provided are as follows:
- Provide New Age with its extensive geological, geochemical, and geophysical database on Platinum Group Metals (PGMs), PGM Polymetallic, and Rare Metals for a minimum of two years.
- Avalon will provide field manager services to New Age in the event any new acquisitions are made as a result of the LOI agreement.
- Avalon and/or its associated companies will receive finderâ€™s fees and/or property option compensation for its services.
Avalon Development Corp. is a private company and a leader in mineral exploration and development in Alaska.
In signing the LOI, New Ageâ€™s objective is to acquire Platinum Group Metals (PGM), PGM Polymetallic and Rare Metal Projects in Alaska, which ranks as the 10th best jurisdiction in the world for mining, according to the Fraser Instituteâ€™s 2017 survey of mining companies.
â€œWe are pleased to partner with Avalon Development Corp. and its President Curt Freeman in Alaska,â€ said Harry Barr, New Ageâ€™s Chairman and CEO.
â€œThe LOI accomplishes another milestone in 2018 for NAM, which was to find a new mining jurisdiction and a qualified consulting group to help our company continue its search for green metals, PGMs and Rare Metals,â€ he said.
â€œIn the event the company acquires one or more projects in the state of Alaska, we will utilize our Prospector Generator Model, which has been successful in our Lithium Division, and well seek out partners to help us develop our newly acquired projects.â€
New Age has been moving to capitalize on investor interest in both lithium and platinum group metals by proceeding with exploration and development programs in Ontario and Manitoba
Both of the companyâ€™s mineral divisions â€“ platinum group metals in Ontario and lithium in Manitoba â€“ have aggressive exploration and development programs planned for 2018, the company said.
New Ageâ€™s 100%-owned River Valley property is the largest undeveloped primary PGM resource in Canada, with 3.9 million ounces of palladium equivalent in the measured plus indicated category, including an additional 1.2 million ounces in inferred.
The Northern portion of the project (Dana North), not including the new high-grade Pine Zone, hosts an additional 24 million tonnes of palladium equivalent.
New Age said River Valley PGM has excellent infrastructure and is located within 100 km of the Sudbury Metallurgical Complex, Ontario.
Meanwhile, New Age said a minimum of $500,000 will be spent this year at the Lithium Division in Manitoba by joint venture partner Azincourt Energy Corp. [AAZ-TSXV]. The division includes five pegmatite-hosted Lithium Projects in the Winnipeg River Pegmatite Field in southeast Manitoba. Three of the projects are drill-ready.
New Age shares were unchanged at 10 cents Wednesday. The 52-week range is 18.5 cents and $0.05.