Amarc Resources Ltd. (TSXV:AHR) announced that Hudbay Minerals Inc. (TSX:HBM,NYSE:HBM) has confirmed 2018 funding of $3.15 million for Amarc’s JOY project and $1.5 million for the company’s IKE project.

Under the terms of the JOY Project Agreement (see news release dated August 22, 2017) and the IKE Project Agreement (see news release dated July 6, 2017) Hudbay may acquire, through a staged investment process, up to a 60% ownership interest in each of the Projects, with Amarc the operator during the exploration periods. In the first stage, Hudbay can earn an initial 49% interest in JOY and IKE by funding $15 million and $25 million, respectively, of project expenditures before December 31, 2020. In 2017, Hudbay funded $2.0 million to advance JOY and $3.3 million to advance IKE. Pursuant to executed letters of intent, which are conditional on being superseded by amended Agreements by January 31, 2018, Hudbay will have the right to extend its first stage earn-in period for both Agreements by one year to December 31, 2021. The partners have also agreed to include Amarc’s recently acquired PINE claims into the JOY Project. Of the 2018 JOY funding, $1.15 million will be paid to Amarc in 2018 towards its PINE property acquisition costs.
Provided that Hudbay has completed the first stage of funding and acquired 49% interest in the JOY and/or IKE Projects, it can then elect to acquire a further 1% interest (for a total 50% interest) in each Project by funding $5 million and $15 million of expenditures, respectively, by December 31, 2021. Subsequently, Hudbay may earn a further 10% interest (for a total 60% interest) in each of JOY and IKE by completing further important milestones and completing additional project funding that are linked to the acceptance of the requisite project into the Environmental Assessment (“EA”) review process and the issuance of the necessary EA Certificates.

Click here to read the full Amarc Resources Ltd. (TSXV:AHR) press release.