The Australian-focused miner will receive 10.5m shares in THEMAC and 10.5m five-year warrants exercisable at C$0.28 per share. THEMAC shares closed on March 12 at C$0.24.

New Mexico Copper holds an exclusive option over the Copper Flat copper-gold-molybdenum-silver project. Once the transaction has completed, THEMAC will exercise the option and progress the project to production.

Two Mercator nominees will join the THEMAC board.

Mercator MD Patrick Harford said, 'The Copper Flat project is an exceptionally promising asset in the present copper market, and vending New Mexico Copper Company Inc and its exclusive option over the project into a dedicated North American-listed company with highly capable and experienced management will ensure that the project becomes well placed to obtain the funding required for the timely recommencement of production.

'As a result of the transaction Mercator will no longer be responsible for the purchase and development costs of the Copper Flat project but will retain a very substantial interest in the project’s future development.'

Story provided by Business Financial Newswire