The Vancouver-based company granted Newcrest 1 million shares, 1 million warrants at 45 cents, and US$90,000 in cash. In return, Gitennes received 40% of Rio Blanco, a half-interest in Compania Minera Mincrest Peru and 100% of Compania Minera Newcrest Peru.
Since being discovered in 1994, the Rio Blanco copper porphyry prospect has been intersected by 18 drill holes over an 1,300-by-1,800-metre area and to depths of 400 metres. Mineralization includes an extensive blanket of enriched copper grading greater than 1% before hitting primary copper of 0.4-0.6%. Additional drilling is required to determine the extent and grade of the mineralization.
The project is operated by Cyprus Amex Minerals (cym-n), which owns a 60% interest. In return, Cyprus is required spend an initial US$15 million on exploration and development plus deliver a prefeasibility study. Upon completion of the study, Gitennes will be required to fund its 40% interest.
The joint venture also includes several grassroots targets along the east-slope region of the central Andes, unexplored property along strike from Rio Blanco in Ecuador, and additional properties in Peru.
The company plans to seek joint-venture partners for some of these newly acquired properties.
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