Through the transfer of an agreement from Hughes Lang (VSE), Aurex Resources (VSE) has acquired an option on a large tailings project in Chile about 55 km southwest of Santiago.
Hughes Lang signed a letter of intent with Minera Valle Central which in turn has the right to purchase the extraction rights to the tailings from the El Teniente copper mine owned by Corporacion Nacional del Cobre de Chile (ELCO).
In return for transferring the option, Aurex will pay Hughes Lang its expenses incurred to date from the project, as well as 250,000 common shares. The deal is subject to Aurex completing a minimum $500,000 financing within 60 days.
The agreement will give Aurex the right to earn a 51% interest in the project by first funding a study which will determine the commercial terms by which Minera Valle may purchase the tailings from CODELCO.
On the acceptance of the tailings purchase and extraction proposal, Aurex must pay Minera Valle a total of US$2 million as well as fund 70% of the costs required to place the project into production.
All cash payments to Minera Valle will be invested in its portion of the project costs.
The El Teniente copper mine is described as the largest underground copper mine in the world.
The tailings pond covers a surface area of 6.4 square km and is reported to contain 377 million tonnes grading 0.25% copper and 0.019% molybdenum.
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