Amarc owns a 40% interest and is project manager of the JOY District mineral claims. Having consolidated the mineral tenure over the district for the first time in the modern exploration era, Amarc has limited any royalties to levels that are non-value destructive.
Agreement with Freeport
In May 2021, Amarc entered into a Mineral Property Earn-In Agreement (the EIA) with Freeport-McMoRan Mineral Properties Canada Inc. (Freeport), a wholly owned subsidiary of Freeport-McMoRan Inc., whereby Freeport may acquire up to a 70% ownership interest by making staged investments in Amarc’s JOY District. Under the terms of the EIA, Freeport has a two-stage option to earn up to a 70% ownership interest in the mineral claims comprising the JOY District, plus other rights and interests, over up to a 10-year period.
To earn an initial 60% interest, Freeport was required to fund CDN $35 million of work expenditures over a 5-year term. Freeport has provided notice under the EIA that it has invested $35 million, under an accelerated time frame, and earned an initial 60% interest in the JOY District (May 29, 2025 release).
As Freeport has acquired such 60% interest, Amarc and Freeport will proceed to operate the JOY District through a jointly owned corporation with Freeport assuming project operatorship. Upon Freeport earning such 60% interest, it can elect, in its sole discretion, to earn an additional 10% in the mineral claims comprising the JOY District, plus other rights and interests (for a total 70% interest) by sole funding a further CDN $75 million within the following five years.
Once Freeport has finalized its earned ownership interest at either the 60% or 70% level, each party will be responsible for funding its own pro-rata share of project costs on a 60:40 or 70:30 basis.
Brenda Property Option
In February 2025, Amarc announced that it signed a mineral property option agreement with Canasil Resources Inc. (Canasil) pursuant to which Amarc can acquire 100% interest in 22 mineral claims (44.5 km2) that are located adjacent to its JOY tenure and immediately to the east of its AuRORA Cu-Au-Ag discovery (February 11, 2025 release).
The terms of the 5-year option to acquire 100% of the Brenda Property require annual payments of $400,000 with the option to purchase exercise price starting at $8 million if exercised in the first year and increasing on an annual basis to $12 million in year five. The claims are subject to a 2% net smelter returns royalty of which 1% (or one-half) can be acquired for $5 million before commencement of commercial mining operations and $10 million after commencement of mining.
PIL Property Option
In May 2025, Amarc announced it had exercised its right to have approximately 32% of the total mineral claims area of Freeport’s option to acquire 80% of the PIL Property (see Finlay Minerals Ltd. (TSXV:FYL) April 17, 2025 release) brought into the JOY District (July 16, 2025 release). The PIL Property is located northwest of and adjacent to the original JOY District claims and the Brenda Property.
Approximately 32% (42.34 km2) of the PIL mineral claims area lies within the area of common interest under the Agreement. Freeport is responsible for making any expenditures to fund the exercise of the PIL option with Finlay, and expenditures incurred within the Amarc area of common interest only will count towards Freeport’s anticipated election to spend $75 million under Stage 2 of the Agreement with Amarc. If Freeport fulfills its obligation to acquire 80% of the PIL Property, Amarc will have a maximum interest of 24% in the PIL mineral claims within the area of common interest.