An unnamed “major international mining company” intends to earn a 60% interest in five of Arequipa Resources’ (VSE) copper porphyry prospects in Peru.
(The major asked Arequipa not to disclose its identity at this time.) The agreement covers the Los Calatos, Cerro Blanco, Moquegua, Rio Tambo and Promota prospects. The major can earn the 60% interest in each of the properties by meeting certain option payments, work commitments and cash “success” payments.
Staged option payments will total US$1.6 million over four years, while cumulative expenditure requirements for the five properties will amount to US$10 million.
The most advanced of the five properties is the Los Calatos, a large porphyry copper target which has yet to be drilled. Catherine McLeod, president, says geological sampling on the remnants of the leached cap overlying the target indicates that the grade could exceed 1% copper.
The major can earn an initial 49% in each of the properties by meeting certain spending requirements and making certain option payments. A further 2% can be earned in each separate property by delivering a positive feasibility study. The remaining 9% can be acquired by paying Arequipa a US$5-million “success” payment for each of the respective properties. McLeod says the company is interested in joint-venturing its other Peruvian copper prospects, but it will proceed with exploration and development of its gold properties on its own for the time being.
The company’s principal gold property is the Paron, where McLeod expects a $650,000 exploration program to get under way this spring.
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