6 months ago
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Geophysx Jamaica Limited, a mining company led by Robert Stewart, has paid US$1.2 million to acquire all the remaining interest in three mining assets it previously purchased from Canada-based C3 Metals for the exploration of copper and gold.
The acquisition encapsulates three zones in Portland, St Andrew and St Catherine.
In its newly released January first quarter financial report, C3 Metals disclosed that it entered into a royalty purchase agreement with an affiliate of Geophysx valued at CAD$1.62 million (US$1.2 million). The cash was paid over at the closing of the deal in August 2023.
C3 Metals is still in its developmental stages, earning no revenue but spending on exploration. It receives funding from the capital markets and its shares are listed on the TSX Venture Exchange.
Geophysx holds over 70 licences for exploring copper, zinc, gold and rare earth minerals across Jamaica.
The previous deal with C3 Metals was struck in 2019. Certain clauses were unlocked which paved the way for subsequent agreements, according to C3 Metals. That deal included licences and/or royalties related to zones at Berkshire Hall in St Catherine, Mount Ogle in St Andrew, Shirley Castle in Portland, and Windsor Castle in Portland that were sold to Geophysx. The new deal sees C3 Metals selling all of its remaining rights, titles, and interest in the zones to Geophysx.
C3 Metals added that future payments could follow related to the actual sale of these three properties.
“Additional consideration from Geophysx for the purchase of these properties includes future cash payments to the company at milestones following commencement of commercial production that could total US$240,000,” the Canadian company said.
On Tuesday, Stewart told the Financial Gleaner that paying out C3 Metals has removed any future royalty obligation. He explained that royalties would have flowed to C3 Metals if the mines were commercialised. No that obligation no longer exists, he said.
“We paid them money to clear our net smelter return, NSR, obligation to get 100 per cent of the rights of the licences,” Stewart said.
Since its inception, Geophysx has invested J$3 billion on research activities for the company, which is still in its developmental stages. The bulk of those funds went towards soil tests called assays.
Earlier this year, Stewart and C3 Metals entered into a joint venture partnership in a separate mining block. The agreement was executed on February 24, and is subject to termination in the event certain conditions are not satisfied on or before July 15, 2024. The venture combines the Pennants gold mine and Main Ridge mining project in Clarendon. Each party will invest equally in the joint venture.
“We are trying to create something new and of value to Jamaica. We are both aligned to make this a success,” said Stewart regarding his partnership with a rival mining entity.
A release on the joint venture said its management committee had approved a 2024 work programme and budget of approximately US$950,000 or US$475,000 per party.
Geophysx remains self-funded by Stewart, a hotel executive-turned-mining developer. Stewart, who is the son of late hotel mogul Gordon ‘Butch’ Stewart, entered the business after taking a break from the Sandals Resorts hotel chain, where he has held leading senior positions in technology and marketing. Following recovery from a life-threatening illness, he decided to venture into mining.
Geophysx started explorations in 2018, harnessing soil samples from across Jamaica over three years. It amassed over 40,000 soil samples. Stewart in 2019 described mining as a rocky business, with the chance of success at 10,000-to-one, but with a high return on investment following discoveries.
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