Pele Mountain Resources Inc. announced today that it has acquired a key mining lease for the mining rights on certain lands below small lakes located within the boundaries of Pele’s Eco Ridge Mine project in Elliot Lake.
In conjunction with the mining lease acquisition, Pele has entered into a NSR (net smelter return) royalty agreement with the previous lessee, Rio Algom Ltd., on standard commercial terms.
“The acquisition of the mining lease is the culmination of a lands and mineral rights assembly process at Eco Ridge spanning nearly a decade,” Al Shefsky, Pele’s president and CEO, stated in a news release.
“Pele now owns a 100 per cent interest in the mineral rights throughout the more than 18,000 contiguous acres that comprise Eco Ridge. Although the mining lease covers less than 1 per cent of the overall project area, its acquisition fills in a gap within the higher grade zone of the main conglomerate bed and will simplify mine engineering going forward.”
Pele has applied to the Ministry of Northern Development and Mines (MNDM) to renew the mining lease for an additional 21-year term following the expiration of its current term on Sept. 30.
Pele is working towards the development of Eco Ridge into an operational mine, which will focus on rare earths and uranium.