Prismo Metals to Increase Hot Breccia Interest to 95%, Secures Option for Full Control
Executive Summary
- Prismo Metals Inc. will increase its ownership of the Hot Breccia copper project in Arizona from 75% to 95% by purchasing an additional 20% interest from Infinitum Copper Corp. for CAD $185,000.
- The company also secured an irrevocable option to acquire Infinitum’s remaining 5% stake, giving Prismo a clear path to 100% ownership of the project.
- Closing is expected around January 16 2025; the cash payment will be funded by a third‑party advance and will not draw on working capital earmarked for the Silver King project.
Key Details
- Transaction Structure:
- Purchase of 20% additional interest in Hot Breccia for CAD $185,000.
- Assumption of Infinitum’s obligations under an existing option agreement with Walnut Mines LLC (valued at approx. CAD $54,000) via issuance of Prismo common shares at a deemed price of $0.11 per share (subject to adjustments).
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Irrevocable option granted to Prismo to acquire the remaining 5% interest from Infinitum, enabling eventual 100% ownership.
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Consideration & Funding:
- Cash payment of CAD $185,000 will be provided as an advance by a third party; no impact on Prismo’s working capital reserved for the Silver King project.
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Additional clause: Prismo will pay 5% of any consideration received from a future sale or assignment of its Hot Breccia interest to a third party.
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Closing Timeline: Expected around January 16 2025.
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Strategic Rationale (CEO Quote): The transaction removes previous ownership constraints, enhancing strategic flexibility and enabling funding for drilling and potential third‑party partnerships at Hot Breccia.
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Project Background:
- Hot Breccia lies in the Arizona Copper Belt, adjacent to world‑class porphyry copper deposits (e.g., Miami‑Inspiration, San Manuel, Resolution).
- Historical drilling (1970s) intersected high‑grade copper mineralization at depths of 640–830 m (e.g., 23 m @ 0.54% Cu; 18 m @ 1.4% Cu & 4.65% Zn).
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Ongoing exploration plans include a drill program targeting the entire Paleozoic carbonate sequence and the underlying porphyry breccia zone.
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Qualified Person: Dr. Craig Gibson, PhD., CPG., Chief Exploration Officer and director of Prismo, has reviewed and approved the technical disclosure.
Notable Quotes
“The transaction announced today totally removes that constraint and materially improves the strategic flexibility of the project.” – Alain Lambert, CEO, Prismo Metals Inc.
“Walnut Mines is solidly in favor of any action that moves Hot Breccia closer to a serious drill program… we are hopeful that this transaction will accomplish that goal in 2026.” – Dr. Linus Keating, Manager, Walnut Mines LLC.