JOHANNESBURG (miningweekly.com) – TSX-V-listed Duran has signed a definitive agreement allowing Rio Alto Mining to earn stakes in two South American-based projects.
Duran’s potential joint venture partner could obtain a 70% stake in Duran’s Minasnioc gold/silver project and a 65% interest in its Ichuña copper-silver project.
"I'm very excited to have Rio Alto, an established mining company in Peru, as a partner in the Minasnioc and Ichuña projects," commented Duran CEO and president Jeffrey Reeder.
Rio Alto would acquire a 51% interest in Minasnioc, located 300 km south-east of Lima, Peru's capital, after undertaking all the exploration work required to justify an economic assessment within a three-year period and paying Duran $500 000.
An additional 19% interest could be earned after two years, upon the completion of the permitting and preparation of a study required for a production decision and another $500 000 payment.
To obtain a 65% stake in Ichuña, based 120 km north-east of Arequipa, in southern Peru, Rio Alto must incur $8-million in exploration costs within four years.
The programme included drilling 8 000 m – half of which must be completed in the first year – and transfering $500 000 to Duran within the four-year period.