Finlay secures TSX Venture Exchange’s acceptance for two earn-in agreements

Canadian mining company Finlay Minerals has received the TSX Venture Exchange's conditional acceptance for its earn-in agreements with Freeport-McMoRan concerning the PIL and ATTY properties, located in Toodoggone mining district of north-central British Columbia, Canada.

The PIL earn-in agreement enables Freeport to obtain an 80% interest in the PIL property by making cash payments of C$3m ($2.1m) to Finlay and contributing C$25m in exploration on the PIL property over six years.

The ATTY earn-in agreement allows for an 80% interest acquisition in the ATTY Property with C$1.1m and C$10m in exploration costs. These investments may be accelerated at Freeport's discretion.

Upon completion of the earn-in, Freeport and Finlay will form a joint venture for further exploration, holding 80% and 20% interests, respectively.

Any party that does not fund their share will see their stake in the joint venture company dilute, potentially converting to a 1% net smelter returns (NSR) royalty.

During the earn-in period, Finlay will operate the properties, reporting to a joint technical committee. Both properties are subject to a 3% NSR royalty held by a private company Electrum Resource Corporation, with Finlay having the right to buy back half of the royalty on each property.

Amended agreements with Electrum outline increased buy-back payments funded by Freeport, avoiding dilution to Finlay's interest.

The buy-back payments for the PIL property range from $10m to $20m, depending on the timing and stage of feasibility studies or commercial production.

The ATTY property's buy-back payments vary from $5m to $10m under similar conditions. Additionally, Finlay and Electrum have agreed to extinguish share issuance obligations to Electrum upon a production decision on the properties.

Freeport-McMoRan is an international metals company with a focus on copper and significant operations and reserves in the Americas and Indonesia.

In June 2024, Finlay agreed to acquire the SAY Property, a high-grade copper and silver prospect located 140km north of Smithers in British Colombia from Electrum Resources.

"Finlay secures TSX Venture Exchange’s acceptance for two earn-in agreements" was originally created and published by Mining Technology, a GlobalData owned brand.

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