PERTH (miningweekly.com) – Diversified miner South32 has exercised its option to earn a majority interest in ASX-listed Inca Minerals’ Greater Riqueza zinc/silver/lead project, in Peru.
South32 has agreed to the Phase 1 exploration funding to acquire an initial 60% interest in the project by spending between $8-million and $10-million.
South32 could then elect to acquire an additional 10% interest in the project in return for funding all project expenditure needed to conduct and complete a prefeasibility study on the project.
Inca said on Wednesday that having exercised its option, and with the agreement of several key terms, there was now a clear pathway for future negotiations on the project.
The two companies will negotiate the remainder of the earn-in agreement, including the exact funding of the Phase 1 earn-in, following the completion of the geophysical studies, and within 90 days of the final geophysical data report.