An agreement with a Chilean individual sets the stage for Yuma Gold Mines (YUM-V) to acquire the Sierra Miranda copper mine, 50 km northeast of Antofagasta.
The mine was previously owned by a unit of Anglo American, which outlined a geological reserve of 21.6 million tonnes at a grade of 0.74% copper. Yuma describes the potential to expand reserves as “excellent.”
The junior agreed to pay US$10 million for the mine, including an advance payment of US$50,000 and four semi-annual payments of US$200,000, starting 12 months after signing the agreement. The final payment of US$9 million is due within 42 months of signing.
Yuma has one year to complete its due diligence before entering into a formal purchase agreement.
The company also has a lease agreement allowing it to extract ore from the mine (at a fixed price of US$1 per tonne) until it signs the formal purchase agreement.
During the due diligence period, Yuma will extract higher-grade ore (to 2% copper oxide) from the mine for processing at its Dona Ada plant 100 km to the northeast.
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