Discovery Energy Metals has signed a definitive agreement with Zimtu Capital to acquire a 100% interest in the Crystal Lake Copper Property in north-central British Columbia, Canada.
The property is comprised of eight mineral claims that span approximately 5,283 hectares and is advantageously positioned 34km south of Fort Fraser.
Under the terms of the agreement with Zimtu Capital, Discovery will make cash payments totalling $200,000 and issue 2,000,000 common shares.
A bonus consideration is also in place upon the discovery of a significant drill intercept, alongside a 2% net smelter returns (NSR) royalty with a buyback option.
Furthermore, Discovery intends to raise up to $1m through a non-brokered private placement of 10,000,000 units at $0.10 each.
The proceeds will support general working capital and further exploration of the Crystal Lake Property. The offering’s completion is subject to regulatory approvals, and securities issued will be subject to a statutory hold period.
Discovery CEO Mike Hodgeof said: “We are excited to secure the Crystal Lake Copper Property, which provides the company with another promising grassroots copper opportunity. We believe the combination of scale, geological setting and highly valued inherited historical work makes this a strong candidate for future exploration success.”
The Crystal Lake Copper Property has shown promising signs of a significant porphyry copper system, with early stage exploration programmes revealing a magnetic high indicative of a porphyry intrusion.
Additionally, soil geochemistry has confirmed a north-south copper anomaly and grab samples have yielded up to 0.7% copper with traces of gold and silver.
The property benefits from excellent transport links, being easily reachable by road and situated close to a CN Railway Line, a primary BC Hydro electricity transmission line and a gas pipeline that runs alongside Highway 16.
In recent years, Crystal Lake has been the focus of several preliminary exploration initiatives, with the most significant conducted by Entrée Gold between 2009 and 2010.
During this period, a comprehensive AeroTEM electromagnetic and magnetic geophysical survey was executed via helicopter, covering approximately 90% of the estate.
This survey revealed a magnetic porphyry intrusion with an estimated diameter of around 2.3km. Building on this, Zimtu Capital undertook geochemical sampling and petrography from 2020 to 2024.
