Sun Metals Corp. entered into a purchase agreement to acquire remaining 51% interest in Lorraine copper-gold project from Teck Resources Limited (TSX:TECK.B) for CAD 9 million.

Sun Metals Corp. (TSXV:SUNM) entered into a purchase agreement to acquire remaining 51% interest in Lorraine copper-gold project from Teck Resources Limited (TSX:TECK.B) for CAD 9 million on October 8, 2020. The consideration is to be made in either cash or common shares of CAD 0.5 million payable on the closing date, CAD 0.5 million payable on the first anniversary of the closing date; and CAD 0.5 million payable on the second anniversary of the closing date.

Additional milestone payments to Teck in either cash or common shares of the Company as CAD 0.5 million upon a Preliminary Economic Assessment, CAD 2 million upon a Feasibility Study and CAD 5 million upon a construction decision. Teck will retain NSR royalties on closing 1.0% NSR royalty on all claims that are not already burdened by a royalty and 0.25% NSR royalty on all claims that are subject to existing royalties. Transaction is subject to receipt of all required regulatory and third-party consents and satisfaction of customary closing conditions and documentation.

Closing is expected to take place in November 2020.