The Mexican subsidiary of
Freeport will earn its interest over five years in exchange for paying US$2 million in cash and spending at least US$1.8 million on exploration.
It can increase its interest to 70% by preparing a positive feasibility study. Also, if Scorpio elects not to fund its share of development costs and if Freeport agrees to foot the bill for all preproduction work, the major could boost its interest even further, to 80%.
The 4,200-ha property, situated 56 km northwest of Hermosillo, hosts nine copper-zinc skarn occurrences, plus additional copper targets. Over the past 18 months, Freeport has conducted geological mapping and sampling.
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