Cominco hands Bongara zinc project to Australia’s Pasminco

For an undisclosed amount, Cominco (CLT-T) has transferred its right to earn 65% of the Bongara zinc project in northern Peru to Australia’s Pasminco.

The latter, through its Peruvian subsidiary, will make a one-time cash payment and grant a net smelter return royalty based on the size of the deposit. The royalty will be determined at the time of a feasibility study.

Pasminco will assume Cominco’s obligations at the 45,900-ha property, including making payments to Solitario Resources (SLR-T), which retains a 35% interest.

Pasminco intends to launch a 10,500-metre drill campaign on the main target, known as Florida Canyon.

Under the original 1996 agreement with Solitario, Cominco was to earn a 65% interest in the project by spending US$27.5 million over seven years or completing a feasibility study.

During the past three years, Cominco spent more than US$14 million.

Cominco can elect to return to the project by purchasing a 33.15% stake from Pasminco, in the event drill results prove sufficiently encouraging.

Strathmore Resources (SMR-V) has changed its name to Strathmore Minerals on a 1-new-share-for 5-old share basis.

Nora Explorations (NXI-M) has changed its name to Afri-Can Marine Minerals (AFA-M) on a 1-new-share-for-1-old-share basis.