TNT Mines signs exclusivity agreement to buy Pelley Ridge project
TNT Mines has signed an exclusivity agreement to potentially purchase all of the issued capital in Metals of Americas (MOA), which owns the Pelley Ridge zinc project in Montana, US.
The acquisition will give the company a highly prospective advanced zinc exploration asset.
Under the four-month exclusivity agreement, TNT will have until 30 April to complete legal and technical due diligence on the Pelley Ridge exploration project and to reach a binding acquisition agreement with MOA.
TIN will appoint MOA founder and geologist Cherie Leeden as a technical advisor on minerals assets, including Pelley Ridge.
Leeden will also lead the company’s project generation strategy targeting undervalued, advanced mining assets in North America.
“The project is said to have a similar tectonic and time‐stratigraphic setting to the Sullivan zinc deposit, which hosted more than 160 million tonnes of ore grading at 12% lead and zinc.”
TNT Mines chairman Brett Mitchell said: “While we will still retain our Tasmanian tin projects, our board is of the view that securing and developing base metals, precious or strategic metal projects in tier‐one mining jurisdictions will complement the current project portfolio and add significant value to our shareholders.
“The Pelley Ridge zinc project, in the board’s view, fits this profile as it already contains a significant ore grade intercept.”
The drill-ready Pelley Ridge project comprises two contiguous mineral leases, the Pelly Ridge and the Bromley, covering an aggregate area of around 2,000ha.
It has been subjected to limited exploration activity, although historical drilling identified significant intercepts, including 14.9m at 5.43% Zn from 71m.
The project is said to have a similar tectonic and time‐stratigraphic setting to the Sullivan zinc deposit, which hosted more than 160 million tonnes of ore grading at 12% lead and zinc.