Demesne Resources Ltd. Enters Definitive Agreement
Vancouver, BC — Demesne Resources Ltd. (CSE:DEME) (OTCQB:DEMRF) has recently entered into a promising option agreement regarding the acquisition of the IMA Mine tungsten project, situated in East-Central Idaho. This agreement highlights the company’s commitment to exploring valuable mineral resources across North America.
Strategic Importance of the IMA Mine Project
The IMA Mine holds historical significance as a past-producing underground tungsten mine. Located on 22 patented claims, this site produced nearly 199,449 metric tons of tungsten tri-oxide (WO3) from 1945 to 1957. The property has a notable prospect for further development, especially given its historical mining activities during the mid-20th century.
Opportunity for Growth in Tungsten Production
Murray Nye, President and CEO of Demesne, emphasized the incredible opportunity presented by the IMA property. “This site offers potential for developing North America’s only operational tungsten mine, coupled with the promise of significant molybdenum deposits,” he stated. The capability for low-cost production combined with a strategic location in Idaho enhances its attractiveness.
Financial Terms of the Option Agreement
The agreement allows Demesne to acquire a 100% interest in the IMA Property, subject to a 2% royalty, by fulfilling certain financial obligations totaling US$5.8 million over an eight-year period:
- US$100,000 on the effective date
- US$50,000 at the six-month mark
- US$100,000 after one year
- US$130,000 at the two-year anniversary
- US$150,000 at the three-year milestone
- US$250,000 at the four-year anniversary
- US$250,000 at the five-year mark
- US$770,000 at the six-year anniversary
- US$1,000,000 at the seven-year anniversary
- US$3,000,000 at the eight-year anniversary
Following the completion of these payments, Demesne will hold an undivided title to the property, free of encumbrances except for the specified royalty. Notably, they have the option to reduce the royalty to 1% by making an additional payment before the four-year anniversary.
Exploring New Potential on the IMA Property
The IMA Property is situated in the Lemhi Range, easily accessible and strategically located near existing infrastructure. It spans primarily 395.98 acres with an additional 214.4 acres in the adjacent Pahsimeroi Valley. This region is known for low-cost power, access to water rights, and a skilled mining workforce which can facilitate future operations.
Historical Context and Mineralization
The IMA Mine has a rich history dating back to its beginnings as a silver mine in the 1800s. Its operations have transitioned through different mineral focuses over the decades, revealing a landscape brimming with tungsten and molybdenum potential. Tungsten mineralization is found in quartz veins embedded in Precambrian rock, extending across significant dimensions—up to 900 feet wide and 2000 feet long.
About Demesne Resources Ltd.
Demesne Resources Ltd. is rooted in British Columbia and is dedicated to the acquisition and exploration of magnetite mineral properties. The company’s flagship property, the Star Project, showcases a land area of approximately 4,615.75 hectares. Through their current agreements, Demesne is poised to enhance its visibility and operation capabilities in the mining sector.
Contact Information
For additional details regarding the IMA project or the company, reach out to Murray Nye, CEO, via email at ir@demesneresources.com or by phone at (778) 706-6104.
Frequently Asked Questions
What is the significance of the IMA Mine project?
The IMA Mine project represents a strategic acquisition for Demesne Resources, offering potential for tungsten production and exploration for associated minerals like molybdenum.
How does the option agreement work?
The option agreement allows Demesne to pay staged amounts over eight years to acquire 100% interest in the IMA Property, with a 2% royalty attached.
Where is the IMA Property located?
The IMA Property is situated in East-Central Idaho, near the community of Patterson, within the Lemhi Range.
What has been the historical production of the IMA Mine?
Historically, the IMA Mine produced approximately 199,449 metric tons of tungsten tri-oxide from 1945 to 1957 before ceasing operations in 1958.
Who is the CEO of Demesne Resources Ltd.?
The CEO of Demesne Resources Ltd. is Murray Nye, who is actively involved in the development and communication of the company's strategic initiatives.
