THUNDER BAY – Mining Xmet Inc. CA:XME and Constance Lake First Nation have announced an exploration agreement. The agreement is effective as of January 23, 2014. The Exploration Agreement (the “EA”) will enable the exploration and development of Xmet’s Blackflake project located northwest of Hearst, Ontario.
The EA outlines the working relationship between Xmet and CLFN with respect to exploration activities within the CLFN’s traditional territory which includes all claims forming the Blackflake project. The EA remains in effect until such time as Xmet and the CLFN enter into an impact benefits agreement prior to the commencement of any mine development.
The EA includes terms outlining Xmet’s and CLFN’s mutual respect for the land and a responsible and sustainable approach to exploring the land.
Earlier in January, the company staked additional territories in the area. Xmet Inc staked 298 claim units immediately adjacent to its existing land package that comprises the Blackflake Project bringing its total land package to over 21,000 acres.
“As a result of our recent success in discovering conductive anomalies, and in particular one such anomaly that bares striking geophysical similarities to that of Zenyatta’s Albany Project, we have aggressively expanded our land position based on our geological interpretation of areas co-incident with magnetic lows where we see opportunities to discover additional hydrothermal graphite targets. Our team has identified additional geological indicators, coincident with magnetic lows, which may help us to create excellent targets. We are confident that we have now assembled a highly prospective land position for hydrothermal graphite in the region”, said Alexander Stewart, Chairman and CEO of Xmet.
Zenyatta Ventures has been developing its own graphite project in the area.
Alexander Stewart, Xmet’s Chairman and CEO states “We were very pleased with the EA and are appreciative of the support of Constance Lake’s Chief Sackenay and the CLFN Council. Management and I look forward to continuing to work with the CLFN community as the Blackflake project progresses.”
Xmet has also agreed to provide certain compensation to the CLFN community, subject to certain thresholds, and to provide for environmental protection, employment, business and training opportunities and mitigation of impacts on the CFLN’s traditional territory. In connection with the execution of the EA, Xmet will issue 200,000 common shares in the capital of Xmet upon and subsequently issue 200,000 common share purchase warrants in each of the succeeding three years commencing one year from execution of the EA at exercise prices equal to the closing market price prior to the issue date, with each such share purchase warrant exercisable for a period of two years from the date of issue. All securities issued in connection with the EA are subject to a hold period of four months and a day from the date of issuance.