Forum Energy Metals has entered into an option-to-joint-venture agreement with Rio Tinto Exploration Canada (RTEC) on Forum’s Janice Lake sedimentary copper project in north-central Saskatchewan. RTEC is planning a high-resolution airborne magnetometer survey over the entire extent of the property and approximately 7,000 meters of drilling in 25 to 30 holes in 2019 to meet its first-year exploration commitment.
Under the terms of the agreement, RTEC has committed to $3 million in exploration spending over the next 18 months and has been granted a four-year option to acquire a 51% interest in the Janice Lake project by spending $10 million on exploration, making $490,000 in cash payments, and servicing the remaining $200,000 in underlying cash payments to Transition Metals as per the terms of the forum-transition option agreement dated February 5, 2018.
RTEC has a second option to earn a further 29% interest by spending a further $20 million on exploration over a three-year period (total $30 million) and making further cash payments of $150,000 (total $640,000).
In September 2018, Forum completed a first-pass drill program on the Janice Lake property, with all four drill holes intersecting shallow chalcocite, bornite and native copper mineralization above 80 m in depth.