Alliance ups the ante in Chile
PERTH (miningweekly.com) – Junior explorer Alliance Resources has moved to expand its footprint in Chile by acquiring an option to buy strategic tenements along strike of its own Monardes copper-uranium project.
The tenements were held by a subsidiary of Mantos Exploration and would increase Alliance’s total acreage from 18 km2 to 200 km2.
Under the terms of the transaction, Alliance could buy the tenements for A$2.5-million at any time prior to the end of October 2016. The consideration would be payable in Alliance shares or cash, or a combination of the two.
Alliance would pay an option fee of A$200 000 within seven days of signing a formal option agreement. The ASX-listed company would have the right to carry out due diligence to confirm the status of the tenements and to conduct exploration over the project area.
During the option term, Alliance would be responsible for keeping the tenements in good standing and would pay all tenement costs, including renewal fees.
If the company exercised its option fee, the two parties would also enter into a royalty agreement under which Mantos would be entitled to a 1% net smelter return for the minerals produced from the tenements. Alliance would have the right to buy the royalty based on an agreed valuation or market value determined by an independent valuer.
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