Barrick Gold (TSE) can earn a 60% interest in CDN-listed Oroperu Resources’ El Toro gold project in north-central Peru.
Situated in the Huamachuco gold district, the 12,590-hectare project is the junior’s most advanced project. It is underlain by what is thought to be an epithermal gold porphyry system, and geologists have identified mineralization along a 3-km strike length in a zone measuring up to 1.5 km wide.
Oroperu has been working in the region for the past two years, and several properties are ready for drilling.
“We have a full complement of technical people, and we have completed geology, geochemistry and geophysics on several properties,” says Oroperu’s president, Wayne Livingstone.
The company holds more than 53,000 hectares of exploration concessions in north-central Peru.
As part of a US$10.5-million earn-in deal, Barrick will buy more than 1.9 million Oroperu units at $2.10 each. A unit consists of one Oroperu common share and one warrant to buy an additional share at $2.40 for a 2-year period.
The US$3 million raised by way of the unit purchase will be spent on exploration. Currently, a 40-hole drill program is aimed at testing geophysical and geochemical anomalies.
Barrick can increase its interest in the project to 60% by making additional expenditures of US$7.5 million. It can increase its equity stake in the junior to 25% by participating in future equity issues of the company.
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