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[ferro-alloys.com]Pancontinental Resources (TSXV: PUC) entered into a binding letter of intent with Pelangio Exploration (TSXV: PX) to acquire up to a 75% interest in the Strachan Ni-Co-Cu project, located 65 kilometres northwest of Timmins, Ontario.

Strachan covers 2,280 hectares within the Montcalm Greenstone Belt and sits approximately 5 kilometres south of Pancon's Gambler project, 10 kilometres east of Pancon's Nova project, 13 kilometres south of Pancon's Montcalm project, and 19 kilometres south of Glencore's former Montcalm Mine.

“Pancon now controls more than 157 square kilometres in a proven nickel-cobalt-copper mining location west of Timmins. Glencore’s former Montcalm Mine property covers less than 5 square kilometres of the Montcalm Gabbro Complex. With Strachan, in addition to our Montcalm, Gambler and Nova projects, Pancon is the dominant player in an emerging battery and energy metals exploration district,” the company’s president and CEO, Layton Croft, said in a media statement.

In the same brief, Croft explained that the Montcalm Mine was discovered and developed based on a single airborne electromagnetic anomaly identified in the 1970s and previously mined over 3.9 million tonnes of ore grading 1.25% nickel, 0.67% copper, and 0.051% cobalt. Based on these results, his company intends to explore the Strachan project by using airborne versatile time-domain electromagnetic and airborne gravity geophysical surveys.

Strachan is Pancon’s fourth early-stage Ni-Co-Cu exploration project in Montcalm. Under the terms of the LOI, the Toronto-based firm can earn a 60% interest in the project for a total cash payment of C$40,000 and issuance of 400,000 common shares over an initial three-year period as well as a C$250,000 work commitment over those three years, including C$50,000 within the first year. Pancon can earn a further 15% interest, for a total 75% interest in the Strachan Project, by completing an additional C$500,000 work commitment over an additional three-year period.

（Mining.com）

• [Editor:王可]