Inomin Mines is partnering up with Sumitomo Metal Mining to advance the company’s Beaver-Lynx project in British Columbia to unlock what it believes to be a major nickel source in a gold-mining region.
Under a term sheet, Sumitomo will have the right to earn up to an 80% interest in the project by spending at least CD 8M on exploration. The earn-in will be in two phases, with the initial phase requiring CD 3M in expenditure for a 60% interest and CD 5M for an additional 20% interest.
Inomin will be the operator of the project during at least the initial earn-in period, entitling the company a fee equal to 10% of project exploration expenditures. It will be reimbursed by Sumitomo a portion of exploration expenditures it incurs at the project during term sheet exclusivity period.
Sumitomo is now conducting due diligence on the claims comprising the project. Upon successful completion, the parties will work towards finalizing a definitive agreement on the earn-in and joint venture.
Inomin acquired the Beaver-Lynx project in 2019 through staking for its potential nickel resource. At the time, it was considered two separate properties.
In 2021, Inomin kicked off its first drill program on the Beaver property that resulted in a major critical minerals discovery (252.1 metres grading 20.6% magnesium and 0.16% nickel). The program successfully tested mineralization over a strike length of 5.7 km.
