The TSX Venture Exchange has accepted for filing documentation with respect to an arm's-length mineral property option agreement between Vortex Metals Inc. and two arm's-length parties. Pursuant to the agreement, the company will have an option to acquire an 80-per-cent interest in the Illapel copper project, consisting of certain mineral claims located in Illapel, Choapa province, Chile. On exercise of the option, the property will be held in a joint venture (JV) company between the company and the optionors.

Pursuant to the terms of the agreement, the company may earn up to an initial 60-per-cent interest in the property by: (i) issuing to the optionors an aggregate of 23 million common shares over a six-year period; (ii) paying an aggregate of $1.1-million in cash over a four-year period; (iii) incurring an aggregate of $10-million in exploration expenditures on the property over a five-year period; and (iv) completing a prefeasibility study on the property by the sixth anniversary of the agreement, which can be extended for another year provided the company pays an additional $200,000 to the optionors by the fifth anniversary of the agreement. In addition, and as part of the initial option, starting six months from the closing date of the agreement, the company is required to pay an optionor $4,500 in monthly contribution (subject to a maximum of up to $226,000) to settle an existing debt.

Additionally, on exercise of the initial option, the optionors will retain a 2.5-per-cent net smelter return (NSR) royalty on the property. The company will have the option to buy back at any time 0.5 per cent of such NSR royalty for $1.75-million (U.S.), payable in cash.

Upon exercise of the initial option, the company will have five years from such date to acquire an additional 20-per-cent interest within in the property by completing: (i) a feasibility study on the property; or (ii) a future financing for the construction of the property.

Further, in connection with the acquisition an arm's-length finder may receive $47,500 in cash and up to 987,500 common shares, payable in stages and in alignment with the option exercise consideration paid by the company.

For further details, please refer to the company's news releases dated June 27, 2023, Nov. 20, 2023, Nov. 27, 2023, May 1, 2024, and May 21, 2024.