PERTH (miningweekly.com) - Diversified Canadian miner Teck Resources was looking to earn back a 60% shareholding in the Las Openas gold/silver/zinc project, in Argentina, from ASX-listed Genesis Minerals.
Genesis told shareholders on Wednesday that Teck’s subsidiary Teck Argentina had delivered notice that it would earn back its shareholding in the Las Openas project, after Genesis took full ownership of the project in December last year.
Under the terms of the pre-emptive back-in right, Teck could earn its 60% shareholding in the project by spending $1.2-million. Teck was planning to advance exploration at Las Openas in the coming months by targeting large mineralised systems highlighted by Genesis.
Genesis MD Michael Fowler said on Wednesday that Teck’s decision to earn back into the Las Openas project was “extremely positive”, and validated the company’s belief in the project and its geological potential.
“The fact that Canada’s largest diversified mining company has elected to become the operator of and invest in further exploration at Las Openas is a huge vote of confidence in the project,” said Fowler.
During a November drilling campaign, Genesis discovered wide zones of gold mineralisation with associated silver, lead and zinc. The results from this programme supported Genesis’ belief that Las Openas had the potential to host a multimillion-ounce gold deposit, in a large epithermal system, said Fowler.
“The belief can be further tested with the help of Teck’s immense knowledge and experience,” he added.
On the completion of the earn-back, a joint venture company would be formed to explore, and if warranted, develop the Las Openas project.