Storm agrees to sell Miminiska for $5,812,500 in cash and shares – Richard Mills

2025.12.05

Storm Exploration (TSXV:STRM) is selling its flagship Miminiska gold project for $5.812 million as part of an agreement with European Electric Metals (TSXV:EVX).

Storm has four properties in northwestern Ontario, a jurisdiction that has produced over 200 million ounces of gold. Three of Storm’s properties are located in the Fort Hope area, home to a greenstone belt with the potential to host a major gold camp.

This week Storm announced it has entered into a mineral property purchase agreement with European Electric Metals Inc. (TSXV:EVX), to sell its interest in the Miminiska Project, located in northwestern Ontario for total consideration of $5,812,500 in cash and shares. 

“This an excellent opportunity for Storm. The proposed transaction provides the Company with a robust treasury to explore the Keezhik, Attwood and Gold Standard properties. These three district-scale properties cover more than 400 km² of prospective geology, including the Keezhik Project where historical drilling has confirmed high-grade gold intersections,” Storm Exploration’s President and CEO Bruce Counts said in the Dec. 1 news release. 

“In addition, the proposed transaction will allow Storm to retain exposure to the potential for the discovery of a significant gold deposit at Miminiska through the issuance of shares in European Electric Metals.”

Details of the transactions are as follows: 

• European Electric will make cash payments totaling $3,525,000, including a $200,000 non-refundable deposit to Storm.

• A further $1,800,000 to be paid on the closing date of the transaction, $1,312,500 of which will be delivered to Landore in satisfaction of Storm’s remaining option payment under the Storm-Landore option agreement. 

• $1,000,000 within three months of the closing date, and $525,000 within nine months of the closing date. 

• Total cash to Storm, minus the Landore payment, of $2,212,500. 

• European Electric will issue 7,500,000 shares valued at $0.20 per share, for an aggregate share value of $1,500,000. 

• An additional $787,500 worth of EVX shares on the nine-month anniversary of the transaction closing date, issued at the 30-day volume-weighted-average price of EVX shares on the date that is five business days prior to the issuance date.

• Total share compensation value to Storm of $2,287,500. 

A note about the existing option agreement between Storm Exploration and Landore Resources. Storm currently has an option to acquire a 100% interest in the Miminiska and Keezhik projects. After releasing its final option payment on the closing date of the agreement, Storm will exercise its option to acquire Miminiska and Keezhik. Storm will then sell its interest in Miminiska and keep its interest in Keezhik.

The sale of Miminiska puts Storm in a strong financial position to advance its 100% owned Keezhik and Gold Standard in 2026.

Gold Standard

The Gold Standard Project is approximately 60 kilometers north of Fort Francis and encompasses 6,018 hectares of mineral claims, with road access available. Storm has established exploration agreements with the Naicatchewenin and Nigigoonsiminikaaning first nations, whose traditional territory includes the project area.

Storm plans to evaluate a significant conductivity anomaly stretching over 5 kilometers, which has been interpreted as potential Volcanogenic Massive Sulfide (VMS) mineralization. This hypothesis is supported by results from four shallow exploratory holes drilled by Inco in 1969 and 1970, which recorded copper and zinc mineralization in three of the four holes, although no assay data was reported.

The anomaly sits along the limbs of an apparent fold next to the Manitou Straits shear zone in the property’s southwest corner, where gold-bearing quartz veins were mined between 1901 and 1903. Existing forestry roads offer access to the anomaly.

Planned ground exploration will include geophysical surveys, prospecting and geological mapping across the anomaly’s length, with drilling anticipated to begin in the second quarter of 2026.

Keezhik Project

The Keezhik Project is located within the Miminiska-Fort Hope Greenstone Belt, approximately 380 kilometers north of Thunder Bay, Ontario. The property is within the traditional territory of the Eabametoong First Nation, with whom the company has entered into an exploration agreement.

Eight drill-confirmed gold showings have been identified on the property, as shown on the map above. The exploration strategy at Keezhik will utilize a dual approach.

Exploration efforts will focus on the KL-12 and KL-27 showings, where historical assays have recorded 16.2 g/t Au over 2.0m and 18.9 g/t Au over 1.5m, respectively. Ground geophysical surveys, soil sampling, prospecting and geological mapping are planned to define and prioritize targets in advance of a drill program scheduled for the third quarter of 2026.

Concurrently, Storm will undertake project-wide reconnaissance exploration aimed at identifying new targets. A comprehensive airborne magnetic and electromagnetic survey is planned for early 2026, to be followed by regional prospecting, sampling and geological mapping.

Conclusion 

The deal to sell Miminiska to European Electric Metals, which plans to change its name to Canadian Goldfields Discovery Corp, is, imo, good for STRM shareholders. 

While there is certainly nothing wrong with Miminiska — Storm was planning on drilling it during the first half of 2025 — selling it for $5.8 million in cash and shares lines the treasury for further exploration, including drilling, of its three remaining properties: Gold Standard, Keezhik and Attwood. 

And as CEO Bruce Counts said, the transaction as proposed will allow Storm to retain exposure, through EVX shares, to the potential for the discovery of a significant gold deposit at Miminiska.

Storm Exploration Inc.
TSXV:STRM
Cdn$0.19 2025.12.03
Shares Outstanding 75.8m
Market cap Cdn$3.7m
STRM website 

Richard (Rick) Mills
aheadoftheherd.com

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Richard does not own shares of Storm Exploration Inc. (TSXV:STRM). STRM is a paid advertiser on his site aheadoftheherd.com This article is issued on behalf of STRM.