NEW YORK Northcliff Resources Ltd. has secured up to Canadian $39 million ($37.8 million) in funding for its Sisson tungsten-molybdenum project in central New Brunswick from Todd Minerals Ltd.
The two companies signed an agreement that will see Todd, a subsidiary of Wellington, New Zealand-based Todd Corp., acquire a direct interest in the Sisson project and a 15-percent stake in Fredericton, New Brunswick-based Northcliff.
Todd will become Northcliffs largest shareholder, and under the terms of the deal it will have the right to nominate a member to the Northcliff board.
"The initial funding from Todd totaling up to C$19 million ($18.4 million) is earmarked for ongoing environmental work to support the harmonized Environmental Impact Assessment process currently being undertaken by the federal and provincial governments, as well as furthering design and engineering studies to advance planning from the feasibility study completed earlier this year, sourcing project financing and off-take arrangements," Northcliff president and chief executive officer Chris Zahovskis said in a statement.
The transaction, which is subject to regulatory approvals, is scheduled to close in early October.