Diversified miner South32 has earned a majority stake in Minera Sud Argentina (MSA), an indirect subsidiary of TSX-V-listed Minsud that owns and operates the Chita Valley project.
Minsud has issued a 50.1% shareholding in MSA to South32 Aluminium in accordance with an earn-in right from a 2019 agreement between the companies.
South32 has subscribed for MSA shares in consideration for South32's already funded capital contributions to MSA of C$27-million under the earn-in agreement.
Minsud Argentina (MAI) and South32 have entered into a shareholders' agreement to govern the management and operation of MSA, which will include further exploration and, if economically feasible and agreed by the shareholders, the development and exploitation of the Chita Valley project.
The project is a large exploration stage porphyry system with classic alteration features, widespread porphyry-style copper, molybdenum and gold, as well as polymetallic silver, lead and zinc mineralisation.
Following South32's acquisition of a majority shareholding, Ramiro Massa will no longer act as CEO of MSA as he will be focusing on his duties full-time as CEO of Minsud and MAI, which will include supervision of the joint venture on behalf of Minsud and participation on MSA's technical and governance committees.