(Kitco News) - Orford Mining (TSXV: ORM) reported today that it has, as operator, completed exploration expenditures on the West Raglan project totaling C$6,125,057 funded by Wyloo Metals, which is a private company controlled by Andrew Forrest, the Australian billionaire who founded and chairs Fortescue Metals Group.
"This allows Wyloo to satisfy the first earn-in milestone and acquire 51% ownership interest in the West Raglan project according to the option and joint venture agreement dated January 18, 2021," the company said in a statement.
Orford noted that the agreement required that Wyloo fund C$6,000,000 in exploration expenditures on the property by January 18, 2025.
"Wyloo has accelerated this funding schedule by completing required expenditures by January 18, 2023 and has elected to acquire 51% ownership interest in the West Raglan high-grade nickel project immediately," Orford said.
Importantly, according to a press release, Wyloo has also notified Orford that it is exercising the second earn-in option provided for in the agreement.
The second earn-in option requires Wyloo to fund an additional C$5 million in expenditures on the West Raglan property by January 18, 2026 to earn an additional 19% interest in the property (taking Wyloo's gross interest in the project to 70%).
Overall, Wyloo can earn up to 80% of the West Raglan project for total expenditures of C$25.0 million over 7 years.
"The West Raglan high-grade nickel-copper-PGM project, located in Quebec, has yielded significant high-grade intersections including 28.3 m grading 3.2% nickel, 1.32% copper, 2.4 g/t palladium, and 0.7 g/t platinum at the Seahawk Lens and tremendous unexplored potential remains across the 707 square kilometre property," Orford said.
Orford Mining is a gold explorer focused on prospective and underexplored areas of Northern Quebec. Orford's principal assets are the Qiqavik, West Raglan and lithium exploration projects comprising a land package totaling over 154,400 hectares in the Cape Smith Belt of Northern Quebec. Orford also has four property positions in the Joutel region of the Abitibi District of Northern Quebec.
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