Global commodities major Anglo American has indicated that it will withdraw from an option to increase its ownership in the Pegasus project, in Ecuador, owing to a delay in receiving surface access to drill its preferred target.
The option, which Anglo American exercised in February last year, would have allowed the major to increase its interest in Pegasus from 25% to 51%.
Luminex CEO Marshall Kovall expressed his disappointment in the continued drilling delays at Pegasus. However, he said that Luminex continues to believe the area offers numerous attractive copper porphyry targets.
“Anglo American has spent approximately $26-million as of June 30, 2023, which can pave the way for either Luminex or a new partner to carry on the high-quality work that has been completed so far,” he noted.
Luminex and Anglo American may engage in discussion to realign the earn-in agreement terms given Anglo American's spend to date, 25% ownership in Pegasus and in-country team. The next concession payments for Pegasus are due in March 2024.
Anglo American was the operator of the project from 2018 to 2023.