Canada Zinc Metals Corp. (TSX:CZX) announced that Teck Resources Ltd. (TSX:TECK.B) and Korea Zinc Co. Ltd. (KRX:010130) have delivered it an exercise notice regarding their first option on the Pie, Yuen and Cirque East properties.
As quoted in the press release:
The Pie, Yuen and Cirque East properties (known as the “Pie Option properties” or the “Property”) are the subject of an option agreement concluded on September 9, 2013 with Teck and partner, Korea Zinc. The Option Agreement would see Teck and Korea Zinc spend up to $8.5 million to acquire up to 70% interest in the Pie Option properties in two phases.
The Agreement outlines two options that are subject to certain expenditure requirements, as outlined below:
- Under the First Option, Teck/Korea Zinc can earn an undivided 51% interest in and to the Property by incurring a cumulative aggregate of $3,500,000 in exploration expenditures on the Property on or before December 31, 2017.
- Under the Second Option, Teck/Korea Zinc may elect to acquire an additional 19% interest in the Property for a total of 70%, by incurring an additional $5,000,000 in exploration expenditures (for a total aggregate of $8,500,000 in exploration expenditures) on the Property on or before December 31, 2019.
The press release also states:
Teck has served the First Exercise Notice confirming that the Optionees have incurred cumulative aggregate expenditures of $3,500,000 by December 31, 2017 (or made a cash payment to the Company for any shortfall), thereby exercising the First Option and earning a 51% interest in the Company’s Pie, Cirque East and Yuen properties; three of the 10 regional properties that make up Canada Zinc’s Kechika Regional Project.
Exploration work thus far includes airborne geophysics, soil sampling, mapping, rock sampling and ground geophysics that have continued to advance and refine ranked drill targets across the three option properties. A single drill hole was completed late in the 2016 field season on the Pie property that encountered favorable Gunsteel shale stratigraphy approximately one kilometre west of previous historical drilling on the Pie Main prospect. The exploration program was based out of Teck’s Cirque exploration camp located approximately 20 kilometres northwest of the Company’s flagship Akie property.