Avenir Minerals will invest $3.75m for a 15% stake in Falcon West, with an option to increase ownership to 30%.
Grid Metals Corp. has entered a joint venture agreement with Avenir Minerals, a subsidiary of Agnico Eagle Mines, to develop the Falcon West Cesium Property in Manitoba. Avenir will pay C$3.75m for an initial 15% interest, while Grid retains 85% and operates the project.
Under the terms, Avenir can increase its stake to 30% after completing a preliminary economic assessment or mine plan. The additional 15% would cost 40% of the property’s net present value, discounted at 8%. Both parties will fund costs proportionally.
Avenir also secured an option to acquire up to 19.99% of Grid’s outstanding shares within 90 days of a resource estimate announcement. A joint management committee will oversee the project.