Liberty Gold (TSX:LGD,OTCQX:LGDTF) has agreed to sell its gauge project in southern Utah to Blue Moon Metals (NASDAQ:BMM), shifting its focus away from non-core assets while giving Blue Moon an opportunity to gain a bigger foothold in a strategic US critical mineral district.
deal Liberty Gold will receive 420,935 shares of Blue Moon Metals worth approximately US$2 million along with a 2 percent net smelter return (NSR) royalty on future production from the project. Blue Moon retains the option to repurchase half of that royalty for US$2 million before commercial production.
Liberty Gold said the copper-gallium-germanium property was identified as non-core following a strategic review launched late last year.
For Blue Moon, the acquisition expands its land position around the nearby Apex mine, which has historically been the only primary germanium and gallium producer in the western world.
The company said the addition of the gauge solidifies its control over a key North American district for those critical metals.
“(Following).” acquisition “This acquisition strengthens our land position around the mine and gives us control of the most significant germanium and gallium district in North America,” Said Christian Cargel-Simard, CEO of Blue Moon.
The Gauge Project consists of 181 unpatented mining claims and two state leases covering approximately 5,900 hectares. The property is located along a mineralized belt over five kilometers long and includes a number of historic mines and exploration targets.
Blue Moon said the project shares geological similarities with the Apex Mine, including breccia pipe structures associated with germanium and gallium mineralization.
While previous exploration has been limited, the company sees potential for further exploration through geophysical surveys and modern techniques such as deep drilling.
Under the terms of the agreement, Blue Moon will acquire the project free of most encumbrances, other than existing royalties associated with state-managed lands.
The company is also advancing a portfolio of polymetallic projects in the US and Norway, including copper, zinc, tungsten and precious metals.
For Liberty Gold, the divestiture is in line with its ongoing effort to streamline its asset base and focus capital on core gold projects. The company is evaluating options for non-core holdings through the end of 2025.
The closing of the deal is subject to regulatory approvals, including clearance from the TSX Venture Exchange, and is expected to occur within 30 days.
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Securities Disclosure: I, Gian Liguid, do not have any direct investment interest in any of the companies mentioned in this article.
