PERTH (miningweekly.com) – ASX-listed Sunstone Metals and its joint venture (JV) partner TSX-V-listed Cornerstone Capital Resources have amended the agreement over the Bramaderos gold/copper project, in Ecuador, giving Sunstone an immediate 87.5% stake in the project.
Sunstone in August last year achieved a 51% stake in the JV by spending $3.4-million on the project area.
The Australian company told shareholders on Tuesday that the amendment to the agreement provided the junior with an immediate 87.5% stake in the project, eliminating the requirement for Sunstone to meet various milestones, such as funding and the completion of a feasibility study within five years.
“These changes to the Bramaderos JV structure allow us to focus on making a discovery at Bramaderos knowing that we have a significant 87.5% interest immediately,” said Sunstone MD Malcolm Norris.
The amendments to the JV agreement were agreed upon as a result of a Phase 2 decision in which Sunstone could progress to a 70% interest by funding expenditure through to the completion of a feasibility study, and making cash payments based on resources defined, or with Sunstone remaining at a 51% interest while both parties funded ongoing exploration.
The two companies agreed that the preferred approach would be to move the JV structure forward to allow Sunstone to focus on the delivery of discoveries across several targets, and not be constrained by the path taken through feasibility studies.
“We remain very optimistic about the likelihood of discovery and our focus on porphyry gold/copper targets has delivered significant intervals of gold and copper mineralisation from Bramaderos Main and promising results from the Limon target,” Norris said.
“Drilling at Bramaderos Main and Limon has resumed following the break over Christmas and New Year. Other priority targets, including Porotillo, Gangue and Playas are still to be drill tested, and we are advancing our epithermal gold exploration targets in the western portion of the project to a drill stage.”