The Vancouver-based gold producer spent the past two years negotiating with the Peruvian government to advance the Tambo Grande project, which hosts a resource estimated at 42.3 million tonnes grading 2.04% copper, 1.47% zinc and 0.36% lead, plus 37.7 grams silver per tonne.
In December 1998, the government issued a resolution ratifying a private investment promotion plan for the project.
The Commission for the Promotion of Private Investment (a committee of Peruvian cabinet ministers) has approved agreements governing exploration and development and the transfer to Manhattan Minerals of all the rights in the project that were previously held by the French government through the Bureau de recherches geologiques et minieres, or BRGM.
The company acquired the right to a 75% interest in the 100-sq.-km Tambo Grande concession from BRGM in April 1997. The remaining 25% will be held by the Peruvian government.
Manhattan says it is confident Peruvian President Alberto Fujimori will give approval to the project in the coming months.
The company has closed a private placement of just over 1 million special warrants priced at $2.95 each. One special warrant is exercisable, at no additional cost, into one share of Manhattan and one warrant entitling the owner to buy an additional share at $6 for up to one year.
The $3 million in proceeds will be used to finance exploration at Tambo Grande.
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