- Neotech Metals has earned the right to acquire a 100 per cent interest in the Hecla-Kilmer Project from VR Resources
- Neotech signed a non-binding letter of intent with the junior exploration company to exercise 4 million common shares over 30 months along with $1 million for the rare-earth element project in northeastern Ontario
- The property consists of 10 multi-cell mineral claims in one contiguous block approximately 6 by 7 kilometres in size and covers 46.17 square km
- Neotech Metals Corp. opened trading at $0.71 per share and VR Resources Ltd. opened trading at $0.15 per share
Neotech Metals (CSE:NTMC) has earned the right to acquire a 100 per cent interest in the Hecla-Kilmer Project from VR Resources (TSXV:VRR).
Terms of the deal
Vancouver-based Neotech signed a non-binding letter of intent with the junior exploration company to exercise 4 million common shares over 30 months along with $1 million for the rare-earth element (REE), niobium and phosphate project in northeastern Ontario.
VR will retain its existing right to purchase, at any time, a 1.5 per cent net smelter return from the original property vendors and also has the right to nominate one person to NeoTech’s board of directors or advisory committee.
About the project
Poised for additional drilling and discovery, Hecla-Kilmer is an early-stage exploration project 23 kilometres from the Otter Rapids hydroelectric power generating station, along with active rail and highways.
Hecla-Kilmer Property Location. (Source: VR Resources Ltd.)
The property consists of 10 multi-cell mineral claims in one contiguous block approximately 6 km by 7 km in size and covers 46.17 square km.
Leadership’s take
In a news release, Neotech’s CEO, Reagan Glazier said, “The acquisition of Hecla-Kilmer is highly strategic to Neotech, as it solidifies the company’s position in the REE and Critical Metals sector, adding both a significant, high-quality REE discovery with demonstrated potential, and a large, prospective land package with significant upside potential. Neotech is advancing a multitrack agenda of aggressive exploration and strategic REE district consolidation, and this transaction represents an important step in our path forward.”
Who are Neotech and VR Resources?
Neotech Metals Corp. is a mineral exploration company that already holds options over the EBB Nickel-Cobalt Property in British Columbia. The company has acquired the TREO Property, a 46.1-square-km claim area next to the Wicheeda Carbonatite Rare Earth discovery approximately 130 km northeast of Prince George.
VR Resources Ltd. evaluates, explores and advances large-scale, blue-sky opportunities in copper, gold and critical metals in Nevada and Ontario, where it has also made Canada’s newest diamond discovery.
Neotech Metals Corp. has a market cap of C$33.52 million and opened trading at $0.71 per share.
VR Resources Ltd. has a market cap of C$17.10 million and opened trading at $0.15 per share.
Join the discussion: Find out what everybody’s saying about these REE companies on the Neotech Metals Corp. Bullboard and VR Resources Ltd. Bullboard, and check out Stockhouse’s other stock forums and message boards.
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