Houston Lake Mining Inc (HLM) has entered a letter of intent (LOI) with North American Palladium (PAL), conferring an option to purchase Tib Lake Platinum Group Elements property.

Under the LOI, the purchase from HLM would be contingent on the completion of cash payments and exploration expenditure across the 2,464 hectacre site.

PAL may acquire a 100 per cent interest in the property following staged payments totalling C$450,000 to HLM, in addition to incurring exploration costs of C$1.6 million aggregated over five years.

However, HLM would retain exclusive buy back rights to one per cent of a 2.5 per cent smelter royalty for C$1 million.

HLM CEO Henry Cloepper explained: "HLM is very pleased to have taken a significant step with such a well respected, mining company as North American Palladium.

"North American Palladium's PGE mining expertise and exploration track record in discovering high-grade mineralisation, coupled with available capacity at the LDI mill only 15 km away, provide a unique opportunity for the Tib Lake PGE property."

Sources:



HLM Enters Letter of Intent with North American Palladium for the Option to Purchase its Tib Lake PGE Property (04/01/2012)
 

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