Applied Minerals, Inc. and Continental Mineral Claims, Inc. Enter into an Exploration Agreement with Option to Purchase
March 31, 2020 at 06:13 am EDT
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Applied Minerals, Inc. and Continental Mineral Claims, Inc. entered into an Exploration Agreement with Option to Purchase. The company granted to CMC the exclusive right to enter upon and conduct mineral exploration activities for Metallic Minerals on the company’s Dragon Mine minesite in Utah and an option to purchase the Metallic Minerals. The Option would expire in 2027. Metallic Minerals are defined to include minerals with a high specific gravity and metallic luster, such as gold, silver, lead, copper, zinc, molybdenum, titanium, tungsten, uranium, tin, iron, etc., but exclude any such Metallic Minerals that are intermingled within any economically-recoverable, non-metallic mineral deposits located at or above an elevation of 5,590 feet above sea level. Non-metallic minerals include clay and iron oxide, the minerals mined by the company. The company believes that all economic recoverable non-metallic mineral deposits for the company are well above 5,590 feet above sea level. The Exploration License was for a period of ten years. To obtain and maintain the Exploration License and the Option CMC paid the company $350,000 upon the execution of the Agreement and paid it $150,000 on the first anniversary of the Exploration License in December 2018 and $250,000 in each of 2019 and 2020. In order to maintain the Exploration License and the option after 2020, CMC would be required to pay $250,000 to the company each year.
Applied Minerals, Inc. owns the Dragon Mine in central Utah. From the mine the Company extract, process or has processed by a third party, halloysite clay and iron oxide for sale to a range of end markets. The Company markets the minerals directly and through distributors. It is also engaged in research and development and frequently works collaboratively with customers, consultants, distributors; and a third-party processor to process and enhance its halloysite clay products to improve the performance of its customersâ existing and new products. Its halloysite clay, which the Company markets under the DRAGONITE trade name, is an aluminosilicate mineral with a hollow tubular shape. DRAGONITE can utilize halloysiteâs shape, high surface area, and reactivity to add significant functionality to a number of applications. The Companyâs iron oxide, which it markets under the AMIRON trade name, sales for use in cement, as well as an absorbent for hydrogen sulfide gas contained in natural gas.
APPLIED MINERALS, INC. 