Aston Bay Holdings Signs LOI With BHP Billiton for Storm Project

Aston Bay Holdings (TSXV:BAY) has signed an exclusive letter of intent with a Canadian subsidiary of BHP Billiton (NYSE:BHP) to advance Aston Bay’s storm project. Under the terms of the LOI, the company may earny up to a 75 percent interest in the project.

As quoted in the press release:

To earn a 75% interest in Storm, the LOI anticipates BHPB spending a minimum of CDN$40 million on exploration at Storm within nine years (including a minimum of CDN$2.5 million within two years) of signing a definitive agreement (the “Definitive Agreement”). Aston Bay will have no required exploration expenses for four years from the date of signing the Definitive Agreement. BHPB and Aston Bay are currently discussing terms of the Definitive Agreement, and are targeting completion during the second quarter of 2016. Aston Bay is to hold a gross overriding royalty (“GOR”) of 0.3% on all mineral claims covered by the agreement outside of Aston Bay’s area of mutual interest with Commander Resources Ltd. (“Commander”).

Aston Bay CEO Benjamin Cox, said:

We are very pleased to have attracted, as a partner, a top-tier global mining company with a track record of building and operating some of the world’s largest copper mines. This new partnership is a testament to the exploration potential at the Storm Copper Project. Our agreement with BHP Billiton will advance the Storm Copper Project without significant equity dilution for Aston Bay’s shareholders, leaving Aston Bay with a meaningful interest in the project.

Click here for the full press release.