If we were really clever, we'd structure this article in a five line, a-a-b-b-a rhyming format to let readers know that Pancontinental Gold Corp. (TSX-V:PUC) entered an agreement to earn a majority interest in a project in Limerick Township, Ontario.
But, we're not that poetic, so we'll just report that the Toronto-based company inked a deal with privately-owned Hastings Highlands Resources Ltd. to earn up to a 76% stake in the advanced-stage McBride Nickel-Cobalt-Copper project 25 kilometres south of Bancroft.
Pancontinental will have the opportunity to boost its ownership to 90% if Hastings decides it doesn't want to fund its portion of the joint venture.
The McBride project covers 880 hectares and contains historical resources of an estimated 5.1 million tons of near-surface mineralization hosting nickel, cobalt and copper. Discovered in the 1960's the project has been significantly explored, including over 90 diamond drill holes helping define two deposits and a prospect, which were detailed in a 2004 NI 43-101 technical report.
In 1971, Long Lac Minerals produced an historical resource estimate showing 3.9 million tons grading 0.82% nickel, 0.054% cobalt and 0.25% copper in the North Zone and 1.2 million tons grading 0.30% nickel, 0.03% cobalt and 0.14% copper in the South Zone at McBride.
Companies always have to be careful to reiterate that data is historical, which Pancon did, although it did add that it believes the data to be reliable based upon the quality and reputation of the companies that completed the work.
Pancon President and CEO Layton Croft said he sees the addition to the company's battery metals portfolio as a "game changer" given today's prices and market outlooks for the three main metals of McBride.
Croft says the plan is to get to work re-sampling existing cores, conducting infill and exploration drilling and use modern technologies for additional exploration to move towards a Preliminary Economic Assessment.
Shares of PUC have shot ahead 21.4% to 8.5 cents in morning trading on Thursday following the news.
