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TORONTO, May 26 (Reuters) - Aston Bay Holdings Ltd, a Canadian mineral exploration company, said on Monday it was in exclusive talks with a major mining company about a potential joint venture around its Storm project, a copper-zinc project in the Canadian Arctic.
Vancouver-based Aston Bay did not disclose the name of the other party, but said the discussions were with a major public mining company with a market capitalization of over $10 billion.
Aston Bay said the exclusivity period will last until it reaches an earn-in agreement, obtaining a stake in a venture by investing in its operation, or a memorandum of understanding (MOU). The exclusivity period for the talks ends on June 30, if no agreement is reached by then.
The complete terms and conditions of the potential MOU were still being negotiated, and there was no assurance a MOU will be successfully reached, Aston Bay said in a brief release on Monday.
Shares in Aston Bay rose 9 percent to 24 Canadian cents in early trading on the TSX Venture Exchange on Monday.
Aston Bay has the right to keep investing in the project and gain a bigger stake, or buy up to a 100 percent undivided interest in the Storm asset from Commander Resources Ltd . The copper-zinc asset is located on Somerset Island in Canada's Nunavut Territory. (Reporting by Euan Rocha; Editing by Jeffrey Benkoe)