Sturgeon Lake Zinc-Copper Project, Ontario, Canada

Highlights

  • Odin executes Earn-in Option Agreement with Glencore Canada Corporation (Glencore), February 2019
  • Significant increase in exposure at the advanced Zinc-Copper Sturgeon Lake project area from 22km2 to over 200km2
  • Sturgeon Lake hosts the prolific Mattabi mineralised trend (20km strike), host to multiple historic Zinc - Copper base metal deposits in Ontario, Canada
  • Brownfields and advanced exploration opportunity in a highly prospective VMS (volcanogenic massive sulphide) belt
  • Historical production of 19.8 Mt @ 8.5% Zn, 1.06% Cu, 0.91% Pb, and 120g/t Ag
  • Exploration opportunities along strike, down dip and at depth, with work to date focused near surface
  • Multiple drill-ready targets with near-term resource potential

Glencore Earn-in Option

  • Odin has the option to acquire a 50% interest in the Glencore Sturgeon Lake Properties by spending CAD$6.67m on exploration activities over a three-year period
    • CAD$2m in year 1
    • CAD$2m in year 2 and
    • CAD$2.67m in year 3
  • Upon satisfaction of expenditure requirements and certain other conditions, Odin can enter into a joint venture with Glencore
  • Glencore hold options in 50m shares in Odin exercisable at a price of AUD$0.40 per share for a period of one year from the exercise and closing of the Earn-in Option Agreement*
  • Glencore has the right to all offtake on the properties subject to the agreement
  • Glencore has the right to appoint 1 nominee to Odin’s Board above 5% and 2 nominees above 10% in Odin’s shares.

*If at any time during the Share Options Exercise Period, the number of Glencore Share Options held result in a fully diluted Glencore holding of less than 19.99% of the Company’s issued shares, then Glencore may elect to purchase an additional 20% interest in the joint venture for AUD$20 million (Bump Up Right). If Glencore do exercise the Bump Up Right the Glencore Shareholder Options will lapse. Alternatively, if Glencore elect to exercise any amount of the Glencore Share Options then the Bump Up right will lapse.