Crazy Horse Resources Inc (TSXV:CZH) has entered into a letter of intent to acquire two mining exploration permit applications in the Philippines.The company will purchase Asian Arc Minerals Corp's 100% interest in two mining exploration permit applications in return for six million Crazy Horse shares and assumption of all Asian Arc's obligations relating to the underlying property acquisition.
The permits cover the Kayapa Copper-Gold Porphyry Project in north-central Luzon some 15 km northeast of the commercial centre of Bambang and 145 km from a deep water port at Poro Point. The project is comprised of two mining exploration permit applications over two contiguous claim blocks covering a combined total area of 8,545.5 ha hosting a large and only partly explored copper-gold porphyry deposit similar to other copper-gold porphyry deposits previously mined in the Philippines.
In conjunction with the proposed acquisition, Crazy Horse said it intended to complete a non-brokered private placement of one million common shares at 50 cents a share to provide working capital to complete due diligence and any transaction costs associated with completion of the acquisition. "The proceeds will not be sufficient to undertake drilling on the project and, as such, the company expects to raise additional financing in conjunction with closing the acquisition," Crazy Horse said in a news release quoted by Canadian Press.