The Canadian mining major can first acquire a 51% interest by making C$600,000 in cash payments, including a firm commitment of C$400,000, and spending a total of C$5.7 million on exploration over four years. To acquire the additional 19%, it needs to spend C$10 million on exploration over the following three years.
Should Teck exercise its option, a contractual joint venture will be formed between the two companies. Thereafter, each would fund its pro-rata share of future expenditures on the property or it must incur dilution. If a party’s interest is diluted below 10%, that interest would be converted to a 1.5% net smelter return royalty on the project.
“Teck’s significant technical and operational know-how will be of immediate benefit to the Makwa nickel project,” said Robin Dunbar, Grid Metals’ CEO. “Having Teck involved in the project will provide financial support and added technical expertise to…
