Newmont Gold (NGC-N) will join Southwestern Gold (SWG-T) in the search for gold deposits in southern Peru.
Newmont can earn a half-interest in Southwestern’s Puno project by spending US$1.5 million over four years. Both companies will then contribute further exploration funding on a pro rata basis and Newmont will be responsible for funding a feasibility study, if warranted. By completing such a study, Newmont can earn an additional 10% interest. Yet another 10% can be earned by providing financing for commercial production.
The Puno project consists of 32 concessions totalling 22,500 ha in a Tertiary volcanic belt 40 km west of Lake Titicaca. Southwestern has been active in the area for the past several years, and is involved in a joint venture with Teck (TEK-T) at the nearby Poracota gold project.
Newmont operates the Yanacocha gold mine in northern Peru.
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