Madison Metals Acquires Canada's Largest Undeveloped Antimony Deposit
Deal News | Dec 02, 2024 | Globenewswire
Madison Metals Inc. has announced a significant acquisition of the Howells Lake Antimony Gold Project, covering a vast 13,990.90 hectares of claims in Ontario, Canada. The acquisition includes entering into binding letters of intent with three vendors, establishing Madison's robust presence in the critical minerals sector. Notably, antimony prices have surged due to increased demand and Chinese export restrictions, underpinning the strategic value of this acquisition. The Howells Lake Project not only provides opportunities in antimony but also holds potential gold mineralization, reminiscent of the prestigious Hemlo deposits. A historical estimate, albeit non-compliant with NI-43-101 standards, suggests approximately 51 million pounds of contained antimony. The Company aims to explore and define both known and new mineralization areas, driving shareholder value. The acquisition involves payments in shares and cash to the vendors, with provisions to repurchase net smelter returns. Madison also announced Bruce Durham as a special technical advisor to manage the Howells Lake Project's development.
Sectors
- Mining & Metals
- Critical Minerals
Geography
- Canada – The Howells Lake Project is located in the Thunder Bay Mining Division of Ontario, Canada, making this geography central to the article.
Industry
- Mining & Metals – The article discusses Madison Metals' acquisition of the Howells Lake Antimony Gold Project, emphasizing their focus on critical minerals such as antimony and gold.
- Critical Minerals – Antimony is highlighted as a key critical mineral due to its increasing demand and strategic importance, especially with geopolitical implications affecting its supply.
Financials
- 50,000 common shares and a 2% NSR – Consideration for one vendor as part of the acquisition deal.
- CDN$25,000 and 125,000 common shares – Initial payment and shares issued to the second vendor.
- 2,000,000 common shares and subsequent shares – Shares issued to the third vendor for claims including the antimony deposit.
- Approximately 51 million pounds of antimony – Historic resource estimate for the Howells Lake Project.
- CDN$2 million was spent in early exploration – Historical investment in exploratory efforts in the Howells Lake area.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Madison Metals Inc. | Acquiring Company | Company | A mining and exploration company focused on critical minerals including antimony, uranium, and copper. |
| Duane Parnham | Chairman and CEO | Person | Executive Chairman and CEO of Madison Metals Inc., leading the acquisition. |
| Bruce Durham | Special Technical Advisor | Person | Appointed as special technical advisor and lead technical manager for the Howells Lake Project. |
| John Scott | Ontario Resident Geologist | Person | Provided a historic resource estimate for the Howells Lake Project. |
| Primoris Group Inc. | Public Relations Firm | Company | Handles media inquiries for Madison Metals. |