Rogue Resources is set to acquire the Snow White quartz project, a permitted silica-quartz quarry near Massey.
The Toronto-headquartered company has entered into an agreement with an unnamed, Sudbury-based prospector to purchase the quarry, which is located about 125 kilometres west of Sudbury.
The Snow White property consists of two staked mining claims representing approximately 96 hectares, with has Class A and Class B pit-quarry-aggregate permits for unlimited annual silica/quartz production.
The area surrounding the project is equipped with good infrastructure, an existing access road, and is also proximate to deep-water ports on Lake Huron that the company said it expects could ease transportation logistics in respect of the project.
Under the agreement, Rogue will pay $25,000 for the property at closing, issue 150,000 common shares to the seller, and provide additional payments totalling $725,000 at milestones and anniversaries of the closing, as well as 900,000 common shares during the payment period.
Rogue will also grant a two per cent net return on all quartz-silica from the project, subject to a reservation by the company of a buy-back right upon payment of an additional CAD$2 million to the seller.
The transaction is expected to close in December.
Rogue additionally holds the Silicon Ridge project in Québec; the Radio Hill property, located 85 kilometres southwest of Timmins; and the Langmuir property, located 25 kilometres south of South Porcupine.