NAP partners with Implats, Transition on Ontario project
19th August 2019
By: Mariaan Webb
North American Palladium (NAP), the owner of the Lac des Iles mine near Thunder Bay, Ontario, has vested a 51% interest in the Sunday Lake project, in which South African platinum major Impala Platinum (Implats) and Canadian project generator Transition Metals are the remaining shareholders.
Announcing its continued investment in the platinum group metal (PGM) property on Monday, the company said that its decision was supported by encouraging drilling results from the PGM Zone, including the best intersection reported to date – 41.2 m grading 3.22 g/t platinum, 2.08 g/t palladium and 0.21 g/t gold.
Prior to NAP vesting a 51% interest, the project was a joint venture (JV) between Transition and Implats, whereby Implats held a 75% interest and Transition held a 25% free-carried interest until the completion of a feasibility study, at which time Transition’s interest would convert to a 25% participatory interest.
After completing two winter drilling programmes, NAP had exceeded the mandated two-year exploration expenditure requirement and had completed the requisite cash payments to its partners, comprising $675 000 to Implats and $75 000 to Transition Metals. Accordingly, Implats’ interest in the JV has been reduced to 24% while Transition maintains a 25% free-carried interest through to the completion of a feasibility study.
Commenting on the transaction, CEO and president Jim Gallagher described Sunday Lake as NAP’s “best blue-sky opportunity” and a “key element” of its long-term strategy to build an inventory of high-quality platinum group metal assets in the Thunder Bay region.
“We have demonstrated that the PGM Zone has significant lateral continuity and are now able to focus on areas of enhanced thickness and grade.”
The Sunday Lake PGM project is located 25 km north of Thunder Bay in Jacques township, about 60 km south of NAP’s Lac des Iles mine