Xstrata Zinc has entered into a binding agreement with Sabina Gold and Silver Corporation to purchase the Hackett River and Wishbone exploration properties in the Western Kitikmeot region of Nunavut, North Canada. 

The Hackett River property comprises nine mineral leases totaling 12,250 hectares. The Wishbone area comprises 132 mineral claims covering 107,227 hectares.

Under the terms of the agreement, Xstrata will pay a cash consideration of C$50 million and will grant a silver royalty to acquire the properties. Additionally, Xstrata will commit a further C$50 million in exploration and to complete a bankable feasibility study within four years of the transaction’s closing.

Xstrata Zinc Canada Chief Operating Officer Manuel Alvarez commented: “This transaction, added to the extension of the life of our Brunswick Mine and the development of the Bracemac-McLeod Mine, is consistent with our strategy of increasing the life of Xstrata Zinc’s operations in Canada and demonstrates Xstrata Zinc’s commitment to a growing presence in the country. We now look forward to working with local stakeholders in Nunavut in the coming years as this project moves forward.”

Xstrata Zinc Chief Executive and Xstrata plc Executive Director Santiago Zaldumbide added: „The prospective Hackett River and Wishbone exploration properties are early stage opportunities that could provide additional mined zinc production to complement our Canadian operations. This transaction is aligned with our commitment to continuously seek value enhancing projects for Xstrata Zinc, the world’s leading integrated producer of zinc, and provides us with entry into a highly prospective region.”

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