Flow Metals to Acquire the Monster IOCG Project in Yukon
Executive Summary
- Flow Metals entered an option agreement with Go Metals to acquire 100% of the Monster IOCG project in Yukon, providing exposure to copper, cobalt and gold.
- Consideration includes two issuances of 3 million Flow Metals common shares (at signing and one‑year anniversary) plus up to $4 M in cash milestones ($2 M after a positive feasibility study and $2 M on day 120 of commercial production); Go Metals will retain a 2% NSR royalty.
- The release discloses extensive historic grab‑sample results (up to 22.33% Cu) and limited drilling that confirm mineralization, underscoring the project's Tier‑1 potential.
Key Details
- Option Consideration:
- 3,000,000 Flow Metals common shares payable within 10 business days of required approvals and CSE acceptance.
- Additional 3,000,000 Flow Metals common shares payable on the one‑year anniversary of the agreement execution.
- $2,000,000 cash payable upon completion of a positive feasibility study.
- $2,000,000 cash payable on the 120th day of commercial production.
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Go Metals retains a 2% net smelter return (NSR) royalty on the Monster Project.
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Related‑Party Transaction:
- Certain Flow Metals directors/officers also serve as directors/officers of Go Metals, triggering MI 61‑101 requirements.
- Transaction is exempt from valuation and minority approval thresholds because its fair market value is ≤25% of Flow Metals’ market cap.
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Evans & Evans engaged to provide a fairness opinion for Go Metals’ board (not a formal valuation).
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Monster Project Highlights:
- Discovery‑stage IOCG project ~90 km north of Dawson City, Yukon.
- Surface grab samples show percent‑level Cu and Co over ~14 km strike; strongest values: 22.33% Cu, 9.61% Co, up to 53.52 g/t Ag.
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Three main targets – Bloom (1.9 km²), Arena (5.1 km²) and Beast (2.4 km²) – with dozens of samples meeting the company’s “strongly mineralized” threshold.
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Historical Drilling:
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2021 percussion drilling intersected 0.72% Cu over 5 ft in IOCG‑style altered breccia; drill hole terminated short of gravity anomaly, indicating need for further drilling.
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Sixtymile Project (Adjacent Asset):
- Historic placer gold district with ongoing operations.
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Re‑logging of historic DDH‑11‑18 hole identified a folded metasedimentary sequence; historic intercepts: 105.30 m @ 0.51 g/t Au from 88 m, including 24.07 m @ 1.57 g/t Au (unverified).
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Qualified Person: Harley Slade, P.Geo., VP Exploration & Director, reviewed and approved all technical information per NI 43‑101.
Notable Quotes
“The acquisition of the Monster Project represents a Tier 1‑scale opportunity and positions Flow Metals with meaningful exposure to both gold and copper.” – Scott Sheldon, CEO, Flow Metals
All forward‑looking statements are subject to risks and uncertainties detailed in the release.