Japanese metals and materials giant Sumitomo will invest up to $8 million to advance exploration activities in a nickel-magnesium property near Gibralter mine in B.C.
Inomin Mines Inc. (TSXV: MINE) today announced Sumitomo Metal Mining has signed an earn-in and joint venture agreement that will provide Inomin $3 million for phase one exploration of its Beaver-Lynx property, located between Williams Lake and Quesnel near the Gibraltar copper mine.
The phase one investment will give Sumitomo a 60 per cent interest in the property. Sumitomo will further provide an additional $5 million for a phase two exploration project, to give it an 80 per cent share.
As the operator, Inomin will get a 10 per cent fee on exploration expenditures.
Sumitomo Metal Mining Canada Ltd., a division of Japanese trading house Sumitomo Trading Corp., is no stranger in the B.C. mining and materials space.
It has a 30 per cent interest in the Teck Resources (TSX:TECK.B, NYSE:TCK) Quebrada Blanca copper mine in Chile, last year signed a $16.9 million collaboration agreement with B.C.’s battery materials company Nano One (TSX: NANO), and earlier this year announced it was taking a 9.9 per cent stake in FPX Nickel Corp. (TSX-V:FPX,OTCQB: FPOCF), developer of the Baptiste nickel project in B.C.
Inomin’s Beaver-Lynx property is a polymetallic deposit featuring primarily nickel and magnesium, with some cobalt and chromium, all of which are considered critical minerals. Inomin has also applied for hydrogen rights, as the region is a natural geologic setting for “natural” geologic hydrogen
Initial estimates suggest a low grade nickel content averaging 0.2 per cent, Inomin CEO John Gomez told BIV News.
“It’s fairly near surface, that’s why I think it’s probably economic,” Gomez said. “And we have all the infrastructure in place.
“It’s a very large property. It’s adjacent to the Gibraltar mine property and it’s infrastructure rich. We’re very, very close to hydro power. And that’s why Gibraltar can make so much money. They have a very low grade copper deposit… but it’s still making money.
“We’ve got road access so you can work there year-round, and we have the local labour supply.”
The main question is how much nickel and magnesium does it have? That’s the question Inomin hopes to answer over the next couple of years through a drilling program.
“Magnesium is potentially the most valuable,” Gomez said. “It’s 20 per cent-plus magnesium, and we may have some credits for cobalt and chromium.”
Inomin plans to do some magnetic surveys, as early as next month, with plans to start drilling in the first quarter of 2025 to better identify potential targets.
