Manicouagan Signs A Letter of Intent to Option Its Brabant Lake Zinc Project

Manicouagan Minerals Inc. (TSXV:MAM) has signed a Letter of Intent with Votorantim Metals Canada Inc. to option the entirely owned Brabant Lake Zinc Project to Votorantim.

As quoted in the press release:

Votorantim can earn a 60% interest by making an $80,000 payment on the signing of a definitive option/joint venture agreement followed by cash payments totalling $460,000 and staged expenditures on the project totalling $2,550,000 over a three year period. The LOI also provides for an expenditure commitment of at least $300,000 in the first year. Upon Votorantim earning its 60% interest a joint venture will be formed whereupon future expenditures will be shared in proportion to each party’s interest. Should either party’s interest dilute to 10%, this interest will convert to a 2% Net Smelter Return (“NSR”). The other party has the option to purchase 50% of the NSR for $1,000,000.

The Brabant Lake Zinc Project contains 16 kms of the favourable horizon which hosts the Brabant Lake Zinc Deposit. In 2011, a 560 line-km airborne VTEM PLUS survey was completed over the ground. The geophysical interpretation of the data identified numerous targets for follow-up drilling.

Click here to read the Manicouagan Minerals Inc. (TSXV:MAM) press release