04:33 PM EST, 12/02/2024 (MT Newswires) -- Madison Metals ( MMTLF ) on Monday signed binding letters of intent to acquire the Howells Lake Antimony Gold Project in Ontario, one of the largest undeveloped deposits of the critical material in the country.

The company said it is paying one vendor 50,000 shares and granting a 2% net smelter return, with the option for Madison to repurchase 1% NSR for CDN$1 million. A second vendor will be paid $25,000, issued 125,000 shares on signing, and will receive three subsequent annual payments. The second vendor will also be granted a 2% NSR with a 1% NSR buyback right for CDN$1 million

The project covers 13,990.90 hectares over 697 claims., while a a non-NI 43-101 compliant historic resource estimate of 51-million pounds of antimony, as well as gold mineralization.

Antimony prices have tripled in the past year due to increasing demand and Chinese export restrictions.

"Micro-cap companies rarely, if ever, have the opportunity to obtain complete control of a large, belt-scale asset like the Howells Lake Project, covering such an extensive area of known mineralization that seems to have been overlooked for decades," said Chief Executive Duane Parnham. "The Howells Lake Project has enormous potential to have real economic significance, and Madison is seizing this rare opportunity to discover new areas of antimony-gold mineralization as well as define the known areas of antimony and gold mineralization on this very large, underexplored land position."