Trilogy Metals Inc (TMQ)

[surfer44]

This company formerly known as NovaCopper was spun out of Novagold Resources. Based on yesterday's pr I started a long position.

Trilogy Metals Grants South32 an Option to Form a 50/50 Joint Venture in the UKMP for a Minimum Investment of US$150 Million

April 10, 2017 Download PDF
April 10, 2017 - Vancouver, British Columbia – Trilogy Metals Inc. (TSX, NYSE-MKT: TMQ) ("Trilogy” or “Trilogy Metals”) is pleased to announce that it has signed an agreement with South32 Limited (ASX/JSE/LSE: S32) (“South32”) whereby Trilogy has granted South32 an option to form a 50/50 joint venture with respect to Trilogy’s Alaskan assets, known collectively as the Upper Kobuk Mineral Projects (“UKMP”), which includes the Arctic and Bornite Projects, the Exploration and Option to Lease Agreement with NANA Regional Corporation, Inc. (“NANA”), and the remainder of Trilogy’s state mining claims along the 100km volcanogenic massive sulphide belt (“UKMP Assets”). South32 must contribute a minimum of $10 million each year, for a maximum of 3 years, to keep the option in good standing (“Initial Funding”). South32 may exercise its option at any time to form the 50/50 joint venture (“JV”). To subscribe for 50% of the JV, South32 will contribute a minimum of $150 million, plus any amounts Trilogy spends at the Arctic Project over the next three years to a maximum of $5 million per year (the “Subscription Price”), less an amount of the Initial Funding contributed by South32. All amounts are in US dollars.

Trilogy will host a conference call today at 1:30pm PT. See conference details below.

Highlights of the agreement and an updated $17 million 2017 field program:

South32 to fund $10 million per year, for a maximum of 3 years.
South32 may elect at any time to form a 50/50 joint venture for min. $150M.
Bornite Exploration: South32’s Initial Funding of $10 million this year will be spent on exploration at the Bornite Project during the 2017 field season to test the extension of high-grade copper at the Bornite deposit. The drill program will be off-setting previously drilled diamond drill holes, including RC13-0224 which intersected 236 meters of continuous mineralization averaging 1.9% copper last drilled during the 2013 field program.
Arctic Pre-Feasibility Study: Trilogy previously announced spending of $7.1 million mainly at the Arctic Project during 2017 in preparation for a pre-feasibility study anticipated to be released in Q1 2018.
Trilogy will continue to work closely with the Alaska Industrial Development and Export Authority (“AIDEA”) and NANA to advance the Environmental Impact Study (“EIS”) permitting process for the Ambler Access Road.