Forum Energy buys out Rio Tinto’s share of Janice Lake copper
Forum Energy Metals (TSXV: FMC) has agreed to buy all of Rio Tinto Exploration Canada’s interest in the Janice Lake copper property, giving Forum a 100% interest. The property covers 39,943 hectares in north-central Saskatchewan, 55 km southeast of the Key Lake uranium mill. It contains over 20 sediment-hosted copper showings, says Forum.
The company completed a first-pass, four-hole shallow drill program in August 2018. Copper mineralization was intersected in all four holes at the Janice and Jansem targets within 80 metres of the surface. Hole FEM-01 cut 18.0 metres (true width) grading 0.94% copper and 6.7 g/t silver, including 5.2 m grading 2.22% copper and 16.5 g/t silver. Rio Tinto has since drilled 39 holes totalling 10,033 metres on four drill targets: Janice, Jansem, Kaz, and Rafuse.
Forum has agreed to pay Rio Tinto C$500,000 upon the completion of a preliminary economic assessment, feasibility study or commencement of commercial production, whichever is earlier. Forum will pay an additional C$2 million upon completion of the feasibility study or beginning of commercial production, whichever is earlier. The agreement is dependent on the sale or removal of the project camp.
Rio Tinto has also been granted a 20% back-in right and a 2% net smelter royalty capped at C$50 million.