Mich Resources Agrees to Buy Pavey Ark Ltd. EV Property

Mich Resources has entered into a definitive agreement  with Pavey Ark Minerals Inc.to acquire an option to purchase a 100% interest in Pavey's Chrome-Puddy Property and Danby Triangle Property .The acquisition will close in the second quarter of 2023.

Following a successful closing of the proposed acquisition, the Company anticipates moving the Property forward through systematic exploration with the goal of defining a bulk tonnage mineralized body.
The completion of the acquisition remains subject to several conditions, including receipt of Canadian Securities Exchange approval, who has indicated the acquisition could constitute  a fundamental change of the company as the company does not currently have any assets aside from cash, shareholder approval, and the completion of a minimum $1 million in financing.

As part of the acquistion, Mich Resources will make the following cash payments:
- a one-time cash payment to Pavey of $200,000 on signing of the agreement
- the issuance of 5,000,000 Mich shares to Pavey on closing
- a 1.5% NSR afforded to Pavey on closing
- $150,000 to Pavey on each of the 2nd ,3rd and 4th anniversaries of closing
- share issuances valued at $250,000 on each of the 2nd, 3rd and 4th anniversaries of closing;
- work program funding to advance the project as follows:   a. Year 1 of $550,000 minimum, b. Years 2 and 3 of $700,00 per year minimum

Chrome-Puddy Property Summary
The Chrome-Puddy is located in the Thunder Bay Mining Division, of Ontario, Canada approximately 85 kilometers  north of Lac des Iles Palladium Mine, measures 1,450 hectares (ha) in size, and covers over 90% of the 6.5 km strike length of the Chrome Puddy Ultramafic Intrusion within the region.  The property contains historically identified Nickel (Ni), Copper (Cu), Cobalt (Co) and Platinum Group Metals (PGM) sulphide targets that can be rapidly advanced to drill stage with drill permits pending.   It  also has a bulk tonnage historical resource (non CIM compliant) with Ni-Co-Fe oxide mineralization, and encompasses the past-producing high-grade Chrome Lake Mine, the only chromium producer in Ontario to date.

Grab samples analyzed by the Thunder Bay Resident Geologist office report values including 5.02% Cu, 2.1% Ni, 0.42 g/t gold (Au), 1.5 g/t Platinum (Pt) and 3.75 g/t Palladium (Pd) (OGS Open File Rpt 6285);
Grab sample assays of serpentinite with magnetite veins by Pavey Ark included 1.39 % Ni, 0.45g/t Pt+Pd, 0.65 g/t Au (Sutcliffe, 2014); Multiple untested airborne Dighem, ground MaxMinEM and VLF-EM conductors remaining; Ni-rich magnetite zone with historical drill intersections included 48 m assaying 0.36% Ni, 0.17% Cu, 9.1% recoverable iron (Fe) (Commerce Nickel Mines Ltd. Annual Report 1966);
Historical Puddy Lake resource of 30 M tons grading 0.27% Ni, 7.2% recoverable Fe, and 0.02 Co to a depth of 400 ft (Commerce Nickel Mines Ltd. Annual Report 1966).

Also included in the terms of the Definitive Agreement is the transfer of a 100% interest in Pavey's Danby Triangle Property ("Danby", or the "Additional Property"). Danby is a 1,504 ha Magmatic Sulphide Ni-Cu-PGM target located within the Thunder Bay Mining District approximately 122 km north of the city of Thunder Bay, and within 40km of the Lac des Iles Palladium Mine.  The Additional Property is comprised of seven contiguous staked claims, covering a total of 94 claim units.

A Qualified Person has not yet reviewed the Puddy Lake historical data nor has there been sufficient work conducted to classify this historical estimate as a current mineral resource. Mich Resources is treating this estimate as a "historical resource" and the reader is cautioned not to treat it, or any part of it, as a current mineral resource.  Chrome-Puddy currently has an approved Ontario Junior Exploration Program (OJEP) grant in the amount of $63,800 for 2022 exploration activities .

About the Company
The Company is a British Columbia public company with a registered office at 25th Floor, 700 West Georgia Street, Vancouver, BC, V7Y 1C3. The Company's common shares are listed on the Canadian Securities Exchange (CSE) under the trading symbol "MICH" and reporting in British Columbia and Ontario. The Company is principally engaged in the acquisition and exploration of mineral properties.

 For further information: David Suda, President and Chief Executive Officer, dsuda@michresources.com

Tags: Northern Ontario / Deals & Financial / Battery Metals / All Articles