Sand and Gravel Property
The Merritt Mill Property is host to an active run gravel pit that has a tolling agreement in place which is located on District Lot 4234 – Thompson Nicola Regional District – Parcel 005-729-289. Current revenues range from $50,000 to $70,000 per year. The operation is permitted for up to 60,000 tonnes per year, and the active run gravel pit has a $1.80 per tonne tolling agreement in place with a local cement company with operations in the Interior of British Columbia.
The Company announced on March 31, 2016 that it has entered into the Lower Nicola Joint Venture Agreement with 1050214 B.C. Ltd. Under the Agreement, the Company and the JV Partner will participate in the continued operation and expansion of the Company’s gravel business. The JV Partner will focus on exploring and developing the gravel resource on the opposite side of Aberdeen Road with the interest of supplying aggregate to the Lower Mainland of British Columbia.
The JV Partner has made an initial contribution of $175,000 to be used by the Joint Venture to conduct a full review of the site and work towards receiving operational permits. The Agreement also provides the JV Partner with the option to acquire a 50% interest in the property for aggregate consideration of $1,125,000 payable upon certain milestones being achieved.