York Harbour Metals Finalizes Option Agreement with Firetail Resources to Advance High-Grade Copper-Zinc-Silver Project in Newfoundland
Rhea-AI Summary
York Harbour Metals has successfully closed the first milestone of its option agreement with Firetail Resources, granting Firetail a 49% interest in the York Harbour Copper-Zinc-Silver Project in Newfoundland. The agreement allows Firetail to earn up to an 80% interest over a three-year period. Key terms include:
- $500,000 AUD in cash payments
- 175,000,000 ordinary shares in Firetail Resources
- Completion of 10 kilometres of drilling
A joint venture will be formed upon Firetail exercising the full option or terminating after acquiring a minimum 49% interest. York Harbour also announced a pending 3:1 share consolidation, subject to TSX Venture Exchange approval, to improve its capital structure and position for future growth.
Positive
- Strategic partnership with Firetail Resources to advance the York Harbour Project
- Potential for accelerated project progress and value creation
- Firetail granted a 2% net smelter returns royalty to York Harbour
- Option for Firetail to earn up to 80% interest in the project
- York Harbour maintains a minimum 20% interest with potential free carried interest
Negative
- Dilution of York Harbour's ownership in the York Harbour Project
- Pending 3:1 share consolidation may impact stock liquidity
News Market Reaction
On the day this news was published, YORKF gained 9.82%, reflecting a notable positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
Vancouver, British Columbia--(Newsfile Corp. - September 25, 2024) - YORK HARBOUR METALS INC. (TSXV: YORK) (the "Company" or "York Harbour") is excited to announce the successful closure of the first milestone of the previously disclosed option agreement (the "Option Agreement") with Firetail Resources Limited (ASX: FTL) ("Firetail"), an Australian-listed company. The Option Agreement provides Firetail with the option (the "Option") to earn up to an
Following the completion of the first milestone, Firetail now holds a
President & CEO Blair Naughty commented, "We are thrilled to partner with Firetail Resources, whose experienced leadership and technical teams have a proven track record in advancing mineral projects. With Firetail's involvement, we anticipate accelerated progress at the York Harbour Project, creating value not only for our shareholders but also for the local Newfoundland community."
Option Agreement
The key terms of the Option Agreement remain consistent with those outlined in the Company's June 6, 2024, announcement. Highlights include:
- Option Period: Firetail may exercise the option over a three-year period, during which it can earn up to an
80% interest in the York Harbour Copper-Zinc-Silver Project.
- Total Consideration:
$500,000 AUD in cash payments.- 175,000,000 ordinary shares in Firetail Resources.
- Completion of 10 kilometres of drilling on the York Harbour Project.
A detailed breakdown of the deliverables is as follows:
To view an enhanced version of this graphic, please visit:
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Finder's Fee: A finder's fee equal to
$226,393 is payable in cash to Kluane Capital FZCO, an arm's length party, in connection with the completion of the first milestone.Joint Venture: Upon Firetail exercising the Option in full, or the Option Agreement being terminated after the exercise of a minimum
49% interest in the York Harbour Project, a joint venture between the Company and Firetail will be formed, provided that if Firetail acquires an80% interest in the York Harbour Project, then York Harbour will get a free carried interest until Firetail produces and delivers a pre-feasibility study on the York Harbour Project. If Firetail acquires less than an80% interest, then the parties will pay their pro-rata share of expenditures going forward, provided that York Harbour's interest cannot be reduced to less than20% if York Harbour elects not to contribute to any expenditures going forward. If York Harbour's interest is reduced to20% , then York Harbour will get a free carried interest until Firetail has completed the second milestone and/or the third milestone, as applicable, and completed the pre-feasibility study.
Share Consolidation
York Harbour also announces that its Board of Directors has approved a 3:1 share consolidation, subject to TSX Venture Exchange approval. The consolidation aims to improve the Company's capital structure, reduce share volatility, and better position the Company for future growth initiatives. Following the consolidation, every three pre-consolidation shares will be exchanged for one post-consolidation share. Further details regarding the timing and implementation of the consolidation will be provided in future updates.
About York Harbour Metals
York Harbour Metals Inc. (TSXV: YORK) (OTCQB: YORKF) (Frankfurt: 5DE0) is a mineral exploration and development company focused on high-grade projects in Newfoundland. The Company has recently closed the first milestone of an Option Agreement with Firetail Resources Limited on the York Harbour Copper-Zinc-Silver Project, located approximately 27 km from Corner Brook, Newfoundland. Additionally, York Harbour holds a
For further details, please contact:
Email: info@yorkharbourmetals.com
Phone: +1-604-346-7613
Website: www.yorkharbourmetals.com
About Firetail Resources
Firetail Resources (ASX: FTL) is a battery minerals company with a project portfolio focused on multiple battery mineral commodities. Firetail has commenced drilling in Peru, where its tenure includes the Picha Copper-Silver Project and Charaque Copper Project. Picha hosts multiple drill-ready targets, while Charaque has a farm-in deal with Barrick Gold Corporation. Additionally, Firetail has projects in Western Australia and Queensland, including the advanced Mt Slopeaway Project.
For more information on Firetail Resources, please visit website: www.firetailresources.com.
On Behalf of the Board of Directors,
"Blair Naughty"
CEO and President
Email: info@yorkharbourmetals.com
Phone: 778-302-2257
Website: https://yorkharbourmetals.com/
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward-Looking Statements:
This news release contains forward-looking statements. All statements, other than statements of historical fact that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future are forward-looking statements. Forward-looking statements in this news release include statements regarding receipt of regulatory and, if applicable, approval from the TSXV and ASX of the remaining milestones of the Option; the Company and Firetail completing the outstanding transactions as contemplated by the Option Agreement; the Company and Firetail forming a joint venture following the exercise of the Option; and Firetail maintaining the York Harbour Project in good standing during the option period. These forward-looking statements reflect management's current expectations based on available information and are subject to various risks and uncertainties that may cause outcomes to differ materially from those discussed in the forward-looking statements including adverse market conditions and other factors beyond the control of the parties. Although the Company believes that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and, accordingly, undue reliance should not be put on such statements due to their inherent uncertainty. Factors that could cause actual results or events to differ materially from current expectations include general market conditions, regulatory and exchange requirements with respect to the Option Agreement, and other factors beyond the control of the Company. The Company expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by applicable law.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/224518
FAQ
What is the current ownership structure of the York Harbour Project after the first milestone?
How much can Firetail Resources invest to earn an 80% interest in the York Harbour Project?
What happens if Firetail Resources acquires an 80% interest in the York Harbour Project?
What is the proposed share consolidation ratio for York Harbour Metals (YORKF)?
