Junior-miner Typhoon Exploration Inc. (TSX-Venture:TYP) was in the news today as the company announced the signature of a letter of intent (LOI) with Hecla Quebec Inc., an affiliated company of Hecla Mining Company (NYSE:HL).
Under the terms of the LOI, Typhoon agreed to buy Hecla’s 50% interest in the Fayolle property, as well as any and all the equipment, buildings and structures located on the Fayolle property, for $3,000,000 CDN and a 1% Net Smelter Return Royalty (NSR) in favour of Hecla with the payment coming due on or before December 10, 2018.
The Fayolle property is currently equally held between Hecla (50% interest) and Typhoon (50% interest). The project, covering the eastern extension of the Porcupine-Destor Break, is composed of 39 mining titles for an area of 1,373 hectares.
News of the LOI appears to have had no impact on thinly-traded Typhoon Exploration as no shares have so far traded hands by mid-day trading. Currently, Typhoon Exploration is trading at $0.04, equating to a miniscule $1.45-million market cap. However, shares of HL are moving significantly higher on the news with the larger miner up 5.3% or $0.15 to $2.98 in mid-afternoon trading.
Even though today’s news has perked up shares of HL, the stock still sits near its 52-week lows. Perhaps today’s news is the catalyst investors have been waiting on to push shares higher going forward.
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