PERTH (miningweekly.com) – Minerals explorer Platypus Minerals has terminated its earn-in over a copper exploration project in Peru, with the company saying on Friday that the decision formed part of a review of all its exploration projects.
The termination of the earn-in contract followed shortly on Platypus abandoning the San Damian project concession, also in Peru, in October, and the company divesting a greenfield exploration licence, in Western Australia, in November.
Platypus subsidiary Platypus Resources held a 15% interest in the owner of the copper/porphyry project, which it had earned over the preceding two-and-a-half years by paying about A$1-million to the vendors.
The company told shareholders on Friday that for Platypus to further maintain or increase its interest, the subsidiary would have to make additional payments of A$1.56-million over the next four years, and provide exploration funds of $3-million over the next three years.
Given the present market conditions, Platypus considered this commitment to be high risk, and too large a burden on the company, especially given the company’s inability to attract sufficient investor support to raise an earmarked A$1.5-million to A$2-million in the previous two years, to start a meaningful exploration campaign in Peru.
Platypus has relinquished its 15% interest in the project owner back to the vendors.