Rockcliff Resources Inc. (TSX: V.RCR, Stock Forum) said that Hudson Bay Exploration and Development Co. Ltd., a subsidiary of HudBay Minerals Inc.(TSX: T.HBM, Stock Forum),has exercised its back-in option for the Freebeth property.
The Freebeth property has excellent infrastructure, numerous geophysical targets and two copper bearing zones.
According to the Rockcliff Resources press release, the back-in option requires Hudbay to pay a one-time cash payment of $170,000 to Rockcliff within 60 days and incur a minimum of $1.8 million in work expenditures at Freebeth within three years to earn a 55% interest in the property.
Rockcliff will hold a 45% undivided interest. Hudson Bay Exploration and Development can acquire an additional 10% interest in the property, for a total of 65%, by bringing the property to commencement of commercial production and financing Rockcliff's 35% portion of the development cost, with such costs being reimbursed to Hudbay from the proceeds of production.
Rockcliff is a resource exploration company focused on discovery and advancement of its high-quality mineral properties at its Snow Lake project.
On Wednesday, Rockcliff soared 33% and was trading at $0.02 a share. The company had a market cap of $2.3 million, based on 114.3 million shares outstanding. The 52-week high and low was $0.07 and $0.015 respectively.