Obonga Project: 3 Year Option
Panther Metals PLC has secured a three-year option to purchase three mining claims, Otter Gold, Z2 Gold, and Wig, located in the Obonga project area in Ontario, Canada, for a total cash consideration of CAN$200,000 and a 1.5% net smelter return royalty. The company must drill a minimum of 1,800 metres across the claims, including at least one diamond drill hole on each property, by January 2029 to exercise the option. The Z2 Gold property has previously shown intersections of 0.76m at 5.64g/t Au and 3m at 0.49% Zn, while the Wig property is prospective for palladium, platinum, nickel, copper, and cobalt.
Select text to share a quote on X · sign in to keep highlights & notes in your PALM notes
Panther Metals Plc (LSE: PALM), the exploration company focused on mineral projects in Canada, is pleased to announce the signing of a three year term purchase option agreement (the "Purchase Option") over three multicell mining claims (the "Properties" or "Claims") which comprise the Otter Gold, Z2 Gold and Wig properties which are located in the Obonga project area, the highly prospective Obonga greenstone belt located,160km north of Thunder Bay, Ontario, Canada.
The Purchase Option signed with Mrs Karen Siltamaki is a partial replacement for the purchase option agreement announced 22 November 2021 signed with her late spouse Mr Aki Siltamaki 1 and secures Panther options over the Properties through to January 2029.
Darren Hazelwood, Chief Executive Officer commented:
"The new purchase option agreement over the Siltamaki properties at Obonga secures Panther's rights over three promising gold and base metal prospects through to 2029."
Property Summary
The locations of the Properties relative to the Obonga Project area are shown on Figure 1 below. The Otter Gold Property is located adjacent and to the south of Panther's Wishbone Volcanic Massive Sulphide ("VMS") discovery.2,3 The Wig Property is directly adjacent to the north-western side of Panther's Awkward Prospect and Wig supplements and is prospective for intrusive hosted palladium, platinum, nickel, copper, and cobalt mineralisation. The Z2 Gold property is located on the southern boundary of the Obonga Project and covers magnetic and electromagnetic geophysical targets where limited drilling in the 1970s intersected disseminated sulphide mineralisation, and gold and zinc intersections including 0.76m @ 5.64g/t Au and 3m @ 0.49% Zn.
Transaction Details
The Purchase Option for the three Properties, listed in Table 1 and shown on Figure 1, and held 100% by Mrs Karen Siltamaki, allows Panther the option to purchase the Claims for a total cash consideration of CAN$200,000 and the award of a 1.5% net smelter return ("NSR") royalty as summarised below.
In addition, in order to complete the purchase Panther will need to have drilled no less than an aggregate 1,800 metres within the total package of claims during the three-year option period, and as a minimum will need to conduct at least one diamond drill hole on each of the individual claim areas.
Deal Summary:
The Purchase Option price, payable on the signing of the agreement is CAD$10,000 with further payments of CAD$10,000 due on each anniversary of the date of signing, for three consecutive years.
The Purchase Option gives Panther the option to purchase the Claims, and the project documents for a consideration comprising:
- CAD$200,000 in cash; and
- 1.5% NSR royalty (which has provision for Panther to reduce the royalty to 1.0% NSR through a CAD$1,000,000 buy-back).
The 1.5% NSR royalty is on the net value of all ores, minerals, metals, and materials mined and removed from the four claims included in the option agreement and sold or deemed to have been sold by or for the Royalty Payor and a 1.5% a gross overriding royalty for diamonds.
Table 1: Claims subject to the Purchase Option
| Multicell Mining Claim Number | Property Name | Area (km 2 ) |
|---|---|---|
| 672121 | Wig | 3.12 |
| 672124 | Z2 Gold | 2.50 |
| 585222 | Otter Gold | 0.83 |
Figure 1: Location of the Siltamaki Purchase Option Properties Relative to The Obonga Project Wishbone, Survey and Awkward Prospects on the Obonga Project
References
- Company announcement, Canada - Obonga Project Additional Claim Purchase Option, dated 22 November 2021 ( https://polaris.brighterir.com/public/panther_metals/news/rns/story/w0mpjnx )
- Company announcement, dated 2 February 2023, 'Obonga: New VMS Camp Discovered & High Grades Intersected' ( https://polaris.brighterir.com/public/panther_metals/news/rns/story/x4gy0kx )
- Company announcement, dated 18 January 2022, 'VMS Mineral System Discovered on Obonga Project' ( https://polaris.brighterir.com/public/panther_metals/news/rns/story/x8kld5x )
July 2024 saw Panther awarded an Exploration Permit for Awkward West, supporting an aggressive exploration program including up to 31 drill holes. Historic drilling here revealed notable graphite mineralisation-27.2m at 2.25% Total Graphitic Carbon (TGC) with zones exceeding 5% TGC-alongside promising signs of nickel, copper, and platinum group elements, aligning with Panther's strategic focus on critical minerals.
Dotted Lake Project - Hemlo-Adjacent Gold Opportunity with Growing Momentum
Winston Tailings Project - Gold and Critical Element Production Opportunity
The Winston Tailings Project entails a series of workstreams to quantify, evaluate and permit the contained high-grade gold (Au), gallium (Ga), silver (Ag), zinc (Zn), copper (Cu), indium (In) and cobalt (Co) and other recoverable minerals located within the historic Winston Lake Mine tailings storage facility. Reprocessing the mine tailings, potentially offers Panther the opportunity to unlock residual metal value and contribute to the long-term environmental rehabilitation of the Winston Lake Mine site in Ontario.
Commercial Strategy - Discovery-Driven Value Creation
Cleaned text: letterheads, contacts and legal notices removed. View the original announcement ↗ · Company filings. Not investment advice.