Ironwood Gold Corp. (OTCBB: IROG)
We have seen IROG do the incredible — joining with Teck Resources, Ltd. (NYSE- TCK),a $29 billion market cap corporation and one of North America’s largest integrated resource companies. It is the largest and most profitable diversified mining and mineral processing companies in Canada. A recent report by Edison Investment Research clarifies the IROG – Teck Relationship.
Teck has the option to earn back up to 65% of both Rock Creek and Haystack by funding up to $18m and $12m in exploration at the respective projects. Should Teck elect to exercise its earn back option, Ironwood’s stake in the two projects will reduce by up to 35%. However, for Teck to increase its stake in either project, it seems likely that a significant mineral discovery will need to be made. In which case, the projects should be worth considerably more than the value Edison currently attributes.
Ironwood Gold Corp. (OTCBB: IROG)
First Agreement with Teck – Rock Creek (source Edison Research)
In December 2009, Ironwood acquired the right to earn a 100% interest in Rock Creek according to an option agreement between Teck and Kingsmere Mining, which was subsequently assigned to Ironwood.
September 2010. This minimum expenditure will be incurred as part of the $0.83m budgeted for Phase 1 of the exploration budget. Once Ironwood has achieved this, Teck can, at any time, earn
- 51% by solely funding $9m in exploration;
- A further 14% (bringing its stake to 65%) by solely funding a further $9m in exploration.
If Ironwood spends $6m and Teck has not yet exercised its option, the latter has 60 days to exercise its initial 51% earn-back. In addition, Teck has a 2.5% net smelter royalty (NSR) which expires if it earns 51% of the project.
Second Agreement with Teck – Haystack (source Edison Research)
In addition to its option to acquire Rock Creek, Ironwood has a similar option to acquire the Haystack project from Teck subject to minimum expenditure of $0.1m by 30 September 2010. At any time after Ironwood has exercised this option, Teck can earn back 51% by solely funding $6m in exploration. In addition, by spending a further $6m, Teck can increase its stake to 65%. However, if Ironwood’s expenditure reaches $4m and Teck has not exercised its option, the latter has 60 days to trigger its initial 51% earn-back. Haystack is also subject to a 2.5% NSR.
Teck Resources, Limited
Teck is a diversified resource company committed to responsible mining and mineral development with major business units focused on copper, steelmaking coal, zinc and energy. Headquartered in Vancouver, Canada, its shares are listed on the Toronto Stock Exchange under the symbols TCK.A and TCK.B and the New York Stock Exchange under the symbol TCK. Further information about Teck can be found at: www.teck.com.
Ironwood controls 100 percent of the claim through the exploration phase, with Teck having a buy-back option of up to 65 percent of the project in return for financing and mining operations.
The Assignment Agreement provides that the Ironwood acquires the undivided 100% right, title and interest in and of the Claims by making certain expenditures on or in respect to the exploration and development of the Claims. As such, Ironwood’s rights under the Agreement are subject to certain rights providing for Teck to earn back into the Claims by making certain expenditures on or in respect to the exploration and development of the Claims and further subject to certain royalties payable to Teck.
- Rock Creek Project (Rock Creek 43-101 Report)
- Haystack Property (Haystack Report)
- Cobalt Canyon Property (Cobalt Canyon Report)
This is looking like an incredible way to invest in gold … and Teck is clearly a Company that KNOWS what it is doing and has full faith in Ironwood.
Stay tuned for management profiles or link to StockGuru Ironwood Profile – and see why Teck has invested in Ironwood.
Ironwood Gold Corp.
7047 East Greenway Parkway
Scottsdale, AZ 85254
United States – Map
About: Ironwood Gold Corp. is a mineral exploration and development company building a portfolio of prospective properties containing known deposits of strategic precious metals in politically stable, mining-friendly North American districts with recognized production histories.
Notice Regarding Forward-Looking Statements This news release contains “forward-looking statements” as that term is defined in Section 27A of the United States Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. Statements in this press release which are not purely historical are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future. Such forward-looking statements include, among other things, the development, costs and results of new business opportunities. Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainties associated with new projects and development stage companies. These forward-looking statements are made as of the date of this news release, and we assume no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although we believe that any beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance that any such beliefs, plans, expectations or intentions will prove to be accurate. Investors should consult all of the information set forth herein and should also refer to the risk factors disclosure outlined in our annual report on Form 10-K for the most recent fiscal year, our quarterly reports on Form 10-Q and other periodic reports filed from time-to-time with the Securities and Exchange Commission.
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