Clean Air Metals, which will emerge from the reactivation of the inactive TSX-V-listed Regency Gold, is consolidating its position in the Thunder Bay region of Ontario.

The company, whose chairperson designate is the former CEO of North American Palladium Jim Gallagher, has the Escape Lake property and the Thunder Bay North project in its sights.

Regency entered into a definitive option agreement with TSX-V-listed Benton Resources whereby it has an option to acquire the 100% right, title and interest in the Escape Lake property, subject to a 1.0% net smelter return (NSR) royalty to be retained by Rio Tinto Exploration Canada (RTEC), with such option to be conditional on Benton exercising its pre-existing option to acquire the Escape Lake property from RTEC.

In addition, Benton also assigned to Regency its rights under a letter of intent previously entered into with Panoramic Resources, pursuant to which Benton acquired the right to acquire 100% of Panoramic PGM (Canada), which owns the Thunder Bay North (TBN) project.

The TBN project is located about 50 km northeast of Thunder Bay in the northern part of the proterozoic midcontinent rift region, an important emerging nickel/copper/platinum group metals province. The project consists of 219 unpatented mining claims, covering 40 816 ha.

The 220 ha Escape Lake property is located within the TBN project claim block and along the interpreted magma conduit system which controls the platinum/palladium/base metal mineralisation on the TBN project.

"The recent acquisition of the Lac des Iles Mine by Impala Platinum underscores the globally recognised significance of the platinum-group-element- (PGE-) rich Thunder Bay North region. Clean Air Metals has consolidated two prospective PGE properties with a significant amount of historical exploration drilling with some impressive PGE-Ni-Cu intercepts in North America and is focused on expanding these results,” said Gallagher.

Under the RTEC agreement, Benton was granted an option to acquire 100% ownership interest in Escape Lake Property, subject to a 1% NSR royalty to be retained by RTEC, in exchange for payment of C$6-million by Benton to RTEC over a three-year period.

Under the Panoramic agreement, Regency has the right to acquire a 100% ownership interest in the Pan subsidiary that holds the TBN project, in exchange for payment of C$9-million over a three-year period.

Regency has made the initial payment of $250 000 to Panoramic, which extends the proposed closing of the acquisition and the initial payment of $4.5-million by 60 days. In addition, Regency has the ability to get up to three additional 30-day extensions by making a $10 000 payment for each extension.

The grant of the option is subject to certain conditions, including the completion by Regency of a financing for $7.5-million. Regency has engaged Paradigm Capital and Sprott Capital to complete a brokered private placement of up to $10-million of subscription receipts at $0.20.

Meanwhile, Regency has been inactive for more than one year, when it ceased its involvement in the life sciences and pharmaceutical sector. The company's shares are now listed on the NEX board of the TSX-V. The transaction will result in the reactivation of the company under the exchange’s polices and will require a change of business of the company to the mining sector.

Once reactivated, the company intends to transfer its listing from the NEX board to the TSX-V. The company has also applied for change of name.