BUCHANS VMS PROJECT

Buchans VMS Project

In January 2021, Buchans announced that it had entered into a Collaboration Agreement with Boliden Mineral AB under which Boliden will evaluate the Company’s Buchans VMS property in Newfoundland for possible future investment and participation.

The Collaboration Agreement outlines the terms and conditions under which Buchans will provide information about, and access to, the property for the purpose of facilitating Boliden’s evaluation. Boliden will share with Buchans technical data from its geology/geophysical review and deliver to Buchans relevant technical data compiled by Boliden with respect to the Project.‎

Boliden will contribute $600,000 to Buchans towards the costs of maintaining the Property and approved ongoing exploration and evaluation programs to be undertaken by Buchans on the Property during the Exclusivity Period. Boliden intends to complete its evaluation of the project during an exclusivity period ending December 31, 2021 2021 and the companies will negotiate the Earn-in and Option Agreement and the JV Agreement

The combination of Buchans’ in-depth, hands-on, knowledge of the historic Buchans camp with Boliden’s experience and technological expertise in near-mine exploration for VMS base metal deposits could lead to future discoveries of new buried, high-grade, orebodies and a revitalization of this world-renowned historic VMS mining camp. Boliden has had success in its near mine exploration for VMS deposits at the Garpenberg mine in Sweden and at the Tara mine in Ireland.