Critical Mineral Resources (CMR), a British exploration company focused on critical metals and minerals, has signed an exclusive option agreement to acquire the Igli mine, a high-grade silver/copper project in Morocco’s Anti-Atlas mountains that has returned grades of up to 912 g/t silver and 2.97% copper, according to Mining Weekly.
The business has also raised £750,000 (9.5 Mln MAD) through the issuance of a convertible loan note (CLN) to cover its operating capital and capital expenditure requirements, including Igli exploration operations, the specialized outlet pointed out in a recent report.
A large chunk of this investment will come from Prism Group, a Swiss and UAE-based private investment firm with a long-term investing strategy.
The Igli project is advantageously situated along the same structural corridor as the Tiouit and Imiter mines. Imiter is one of the world’s highest-grade and largest silver mines. CMR has obtained a 16-month exclusive option to conduct geochemical, geophysical, and drilling activities before paying the primary acquisition payment.
First sampling conducted at Igli has thus far been “encouraging,” according to the company. CMR channel and stockpile sample yielded grades of 912 g/t silver and 2.97% copper, 496 g/t silver and 3.34% copper, and 741 g/t silver and 3.21% copper, respectively.
The regional geology proposes three probable targets at Igli. The first includes higher-grade sub-vertical shear zones, the second a lower-grade basalt formation, and the third deeper basement-hosted shear zones.
CMR management believes Igli’s mix of high-grade mineralization in the shear zones and lower-grade mineralization in the basalt formation indicates a promising exploration project.
The arrangement provides that if CMR does not exercise its exclusive option and does not pay the $560,000, a $60,000 option maintenance fee is required seven months after September 13 to keep the exclusive option in effect. This $60,000 will be deducted from the $560,000 cash payout.
A final payment of $150,000 is required six months after the cash payment to acquire a 90% interest, in either cash or stock, at the vendor’s option. CMR will also have the option to purchase the remaining 10% of the Igli project for $500,000 in cash.
The entire acquisition cost, excluding the first $12,000 exclusivity payment, is $790,000 for 90% ownership of the project, and $1.29 Mln for 100%.