C3 Metals and Freeport to step-up exploration at Bellas Gate with new farm-in agreement

Toronto-headquartered C3 Metals (TSXV: CCCM) believes an earn-in agreement with Freeport-McMoRan will help unlock the potential of its Bellas Gate project in Jamaica.

Freeport has been granted a two-stage option to acquire up to a 75% ownership interest in Bellas Gate by funding cumulative exploration and project-related expenditures of C$106.4 million (US$75m).

The Bellas Gate project is immediately adjacent to the east of C3 Metals’ and Geophysx Jamaica’s 50/50 joint venture Super Block project.

Earn-in terms

Under stage 1 of the agreement, Freeport is required to fund C$35.4m (US$25m) of exploration and project-related expenditures over five years to earn a 51% interest in the Bellas Gate project.

C3 Metals will remain the operator of Bellas Gate during the initial stage.

Once Freeport has earned its initial 51% interest, it will have the option to become the operator and to fund an additional C$70.9m (US$50m) of exploration and project-related expenditures over an additional four years to earn a further 24% interest in the Bellas Gate project.

Multiple targets identified

The Bellas Gate project covers 18 kilometres, within which C3 Metals has identified 14 porphyry, more than 30 epithermal and multiple volcanic redbed prospects.

Drilling to date has primarily been focused within a 4km strike at the Provost, Geo Hill, Camel Hill and Connors porphyry prospects.

C3 president and chief executive officer Dan Symons said bringing in an industry-leading party like Freeport provides his company with the opportunity to advance numerous projects within its portfolio in parallel.

‘Systematic approach’

“Over the last two-and-a-half years, we have gained a tremendous understanding of the geologic potential of the Bellas Gate project through a systematic approach to our exploration programs,” Mr Symons said.

“The data we have collected suggests the potential for a new and emerging copper-gold porphyry and epithermal belt.”

“It is our view that the geometry of the porphyry prospects identified to date suggests we will require advanced targeting methods and extensive drilling to vector into the core of these systems.”

“By executing this agreement with Freeport, we manage risk and avoid significant corporate-level equity dilution while sharing in the potential reward.”

Portfolio growth opportunity

Mr Symons said bringing in an industry-leading party like Freeport also provides C3 with the opportunity to concurrently advance numerous projects within its portfolio and maximise the near-term discovery potential for its shareholders.

“Freeport’s endorsement demonstrates the district-scale potential of the Bellas Gate project,” he added.

“Freeport has demonstrated a track record of global copper discoveries, mine development and production, which has led it to become one of the largest copper and gold producers in the world.”