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On January 9, Prismo Metals Inc. announced a significant agreement with Infinitum Copper Corp. that will increase its interest in the Hot Breccia copper project from 75% to 95%. Situated in Arizona’s notable copper-producing region, this acquisition includes an irrevocable option to purchase the remaining 5% stake, paving the way for potential complete ownership.
According to Alain Lambert, the CEO of Prismo, this agreement removes previous constraints that hindered the company’s drilling activities and collaboration opportunities.
He expressed optimism about the strategic flexibility this deal provides, stating, “The transaction announced today totally removes that constraint and materially improves the strategic flexibility of the project.”
Table of Contents:
Strategic implications and future plans
Prismo’s dedication to advancing the Hot Breccia project remains strong. The recent extension of milestone obligations under the existing Option Agreement with Walnut Mines LLC, which holds the Hot Breccia claims, complements this new agreement and offers the company additional strategic options.
Lambert emphasized that these pathways are designed to position Prismo favorably for initiating drilling on what is considered one of the most promising copper exploration sites in Arizona and the broader United States.
Expert perspectives
In support of this venture, Dr. Linus Keating, manager of Walnut Mines LLC, shared his enthusiasm for the project. He stated, “Walnut Mines is solidly in favor of any action that moves Hot Breccia closer to a serious drill program. We are hopeful that this transaction will accomplish that goal. In our opinion, this property remains one of the best copper exploration opportunities in North America.”
The agreement stipulates that Prismo will pay CA $185,000 to acquire an additional 20% interest in Hot Breccia, while also assuming Infinitum’s remaining obligations under the Option Agreement. This arrangement is valued at approximately CA $54,000, based on the issuance of Prismo common shares at a price of $0.11 per share, subject to adjustments at closing. Furthermore, Prismo has committed to paying 5% of any future consideration received from a third-party transaction involving its interest in Hot Breccia.
Rich geology and exploration potential
The Hot Breccia project is strategically located within Arizona’s Copper Belt, recognized for its globally significant porphyry copper deposits. The region hosts prominent mining operations such as Freeport McMoRan’s Miami-Inspiration complex and BHP’s San Manuel mine. Historical drilling by a Rio Tinto subsidiary in the 1970s revealed high-grade copper mineralization at depths ranging from 640 to 830 meters.
Prismo believes that these drilling intercepts could indicate the edges of a larger mineralized system, supported by various data sources, including past drilling results and geophysical surveys, as well as the recent ZTEM survey. The identified anomalous target area spans approximately 1,100 meters by 1,150 meters, suggesting significant exploration potential.
Drilling initiatives and insights
Dr. Craig Gibson, Chief Exploration Officer at Prismo, outlined the drilling intentions for the project. He indicated that the exploration target at Hot Breccia exhibits geological, geochemical, and geophysical characteristics typical of many porphyry copper deposits. The area shares a regional setting similar to BHP-Rio Tinto’s Resolution copper deposit, lauded as one of North America’s greatest copper discoveries.
The planned drilling program aims to penetrate the entire Paleozoic carbonate stratigraphy to reach the anticipated porphyry body or breccia zone. Each drilling hole is expected to yield critical geological information that will guide the targeting of subsequent holes.
According to Alain Lambert, the CEO of Prismo, this agreement removes previous constraints that hindered the company’s drilling activities and collaboration opportunities. He expressed optimism about the strategic flexibility this deal provides, stating, “The transaction announced today totally removes that constraint and materially improves the strategic flexibility of the project.”0
According to Alain Lambert, the CEO of Prismo, this agreement removes previous constraints that hindered the company’s drilling activities and collaboration opportunities. He expressed optimism about the strategic flexibility this deal provides, stating, “The transaction announced today totally removes that constraint and materially improves the strategic flexibility of the project.”1
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