Arizona-based Aranlee Resources (ARB-V) has signed an agreement with Rio Tinto Mining (RTP-N) whereby the latter can acquire a 48-sq.-km gold-copper property in Argentina known as El Acay.
Aranlee holds its interest through an agreement with a private company, Starcross Properties.
To earn its interest, Rio Tinto must pay US$830,000 over four years, plus US$1 million upon submission of a bankable feasibility study (to be completed within five years). The company is also required to spend US$2 million on work programs over five years, and contribute to the agreement its fully owned Saladillo concession, which overlaps El Acay.
After these conditions have been met, Aranlee will have the right to buy back up to a 40% interest in the combined property, or agreee to a 3% net smelter return royalty.
The agreement has yet to be approved by regulators and Aran-lee’s directors.
Aranlee acquired the property in 1995. Government work at El Acay in the early 1970s recovered rock samples grading up to 1% copper, 0.5% lead and 40 grams silver per tonne.
Aranlee conducted rock, soil and stream-sediment sampling there in 1995 and 1996, identifying a zone of alteration measuring 3.5 by 3 km and containing 0.5 gram gold and 0.2% copper.
Be the first to comment on "LATIN AMERICA — Rio Tinto gains stake in El Acay property"