Inomin Mines (TSXV: MINE) said on Monday it is partnering up with Sumitomo Metal Mining to advance the company’s Beaver-Lynx project in British Columbia to unlock what it believes to be a major nickel source in a gold-mining region.
Under a term sheet dated Nov. 1, Sumitomo will have the right to earn up to an 80% interest in the project by spending at least C$8 million on exploration. The earn-in will be in two phases, with the initial phase requiring C$3 million in expenditure for a 60% interest and C$5 million for an additional 20% interest.
Inomin will be the operator of the project during at least the initial earn-in period, entitling the company a fee equal to 10% of project exploration expenditures. It will be reimbursed by Sumitomo a portion of exploration expenditures it incurs at the project during term sheet exclusivity period.
Sumitomo is now conducting due diligence on the claims comprising the project. Upon successful completion, the parties will work towards finalizing a definitive agreement on the earn-in and joint venture.
The Beaver-Lynx property comprises 253.5 sq. km of mineral claims in south-central British Columbia. It is situated approximately 50 km from the city of Williams Lake and adjacent to Taseko Mines’ Gibraltar mine project, one of the largest open-pit copper mines in Canada.
Inomin acquired the Beaver-Lynx project in 2019 through staking for its potential nickel resource. At the time, it was considered two separate properties.
The Beaver-Lynx property is adjacent to Taseko Mines’ Gibraltar mine project, one of the largest open-pit copper mines in Canada.
Past exploration on the Beaver side previously focused on gold, but also resulted in the discovery of nickel sulphides. Ultramafic rock hosting the nickel, delineated by magnetic surveys and drilling, is said to cover a large 4 km by 8 km footprint, indicating the property’s potential for large, bulk tonnage, near-surface nickel.
In 2021, Inomin kicked off its first drill program on the Beaver property that resulted in a major critical minerals discovery (252.1 metres grading 20.6% magnesium and 0.16% nickel). The program successfully tested mineralization over a strike length of 5.7 km.
On the Lynx side, drilling has yet to commence. Inomin staked the property following a site visit that confirmed the existence of extensive nickel in outcroppings. It also noted the similar geological environment to Beaver, as well as both projects’ proximity to the Gibraltar and Mount Polley porphyry deposits, in a geological setting conducive for hosting substantial mineral deposits.
“With Sumitomo’s involvement, we believe Beaver-Lynx’s large mineral resource potential will be realized, and the property could develop into another major mine in a mineral and infrastructure-rich district,” Inomin’s president John Gomez said in a news release on Monday.
Shares of Inomin Mines shot up by 42.9% to C$0.05 following the Sumitomo partnership announcement. The share jump gives the company a market capitalization of C$1.77 million ($1.27m).
