Home > News > NioBay Metals announces...

NioBay Metals announces option to acquire 2 properties with Niobium potential

May 11, 2021

NioBay Metals Inc., has announced the signature of an option agreement with Les Ressources Tectonic inc.  to acquire a 100% interest in two large properties showing exciting potential for niobium discovery.

The two properties, Gouin East and Gouin West, located 150 km south of Chibougamau, Québec, cover two magnetic anomalies, about 6 X 8 km each, remarkably similar in size and structure to the magnetic anomaly over the Niobec Mine, the only niobium commercial operation outside Brazil, located some 200 km east of the Gouin Properties. The composition of a mineralized series of small outcrops and boulders, recently discovered at the periphery of the anomalies, strongly suggest that the magnetic anomalies are produced by an alkaline complex with carbonatites similar to the alkaline complex hosting the Niobec Mine.

"We are excited with the option agreement, as the Gouin Properties hold the potential of a niobium discovery in Québec, and will strengthen our "green" portfolio. The Gouin Properties fit into our vision to become a key player in green metals, supporting low carbon economy." said Claude Dufresne, NioBay’s President and CEO.

The Gouin East and Gouin West properties are made of 114 and 96 claims, respectively, covering a total of 11,650 hectares. These properties are criss-crossed by numerous logging roads at some 75 km from highway 167 and a railroad. A high-voltage line passes just 20 km to the south. These properties are located on the territory of the Opitciwan Atikamekw First Nation whose main agglomeration, Obedjiwan, is about 65 km north-west of the Gouin Properties, on the shore of the Gouin Reservoir.

Limited prospecting works by Tectonic in the last two years led to the discovery of a dozen boulders and few outcrops on the periphery of the magnetic anomalies. The geological composition ranges from syenite and calcio-syenite to carbonatite, typical of a carbonatite-rich alkaline complex. Three of the boulders assayed 0.04%, 0.36% and 0.54% of Nb2O5.

Subject to regulatory approvals from the TSX Venture Exchange, the Option Agreement calls for a total of $190,000 in cash payments, $430,000 payable at NioBay’s option either in cash or in common shares of NioBay and $1.65 million in work commitment, over a six-year period. The first installments, payable upon receipt of regulatory approvals, are $10,000 in cash and $20,000 represented by the issuance of 22,591 common shares of NioBay. In addition, the Option Agreement provides for a firm work commitment of $50,000 to be incurred on the Gouin Properties by August 31, 2021. Upon exercise of this option, a 1% NSR royalty will be granted to Tectonic, being redeemable by Niobay for $1.5 million (or $250,000 at any time during the option period).

Tags: Quebec / Deals & Financial / Metals / All Articles