Mining News: Northern Neighbors: Amarc extends loan, nabs new projects

Amarc Resources Ltd. Nov. 21 announced plans to acquire full ownership of two porphyry projects in north-central and central British Columbia. Joy, the northernmost project, is a porphyry copper-gold target about 15 kilometers (nine miles) north of Kemess district, where Northgate Minerals produced 3 million ounces of gold and 784 million pounds of copper over a 12-year period to 2010 and AuRico Metals recently announced a 628-meter intercept grading 0.53 grams per metric ton gold and 0.41 percent copper. Additionally, three past-producing silver-gold mines – Lawyers, Baker and Shasta – are a few west of Joy. Duke is about 30 kilometers (19 miles) north of the former Bell and Granisle mines in the Babine porphyry-copper district of central B.C. Operated by Noranda Minerals Inc. between 1966 and 1992, Bell and Granisle produced 1.1 billion pounds of copper, 634,000 ounces of gold and 3.5 million oz. of silver. Amarc has entered into two separate transactions – one with a company owned by director, and the other directly with Robert Dickinson, chairman of Hunter Dickinson Inc., or HDI. To acquire full working interest in the Joy and Duke projects, Amarc has agreed to pay C$492,639 in cash. In order to fund the acquisition, Amarc has signed a loan consolidation agreement with Dickinson, pursuant to which a previous two-year loan of C$1 million due Nov. 26 has been extended for three years on customary conditions and increased to C$1.5 million. The Loan remains unsecured and will bear interest at a rate of 9 percent per year. Amarc will issue 10 million three-year term common share purchase warrants with an exercise price of C8 cents per share. Amarc, which is associated with HDI, is focused on advancing Ike, a B.C. project that hosts a new porphyry copper-molybdenum discovery and at least four drill-ready porphyry copper deposit targets.

-Shane Lasley