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First Quantum terminates Ecuador option

8th August 2019

By: Mariaan Webb

Creamer Media Contract Publishing Editor

     

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Base metals miner First Quantum has terminated its earn-in option over the Orquideas copper/molybdenum concession of Luminex Resources in Ecuador.

First Quantum exited the option after the first five drill holes at Orquideas failed to produce significant mineralised intercepts, TSX-V-listed Luminex said on Wednesday.

The junior stated that it would decide whether to keep the concession or to relinquish it.

Further, First Quantum is reviewing progress and exploration data on, and whether to continue with, its earn-in option on Luminex’s Cascas concessions. For the time being, the miner’s earn-in option on Cascas would remain in place, as would the $7-million cash payment schedule over the five-year earn-in period.

First Quantum’s total required spend to earn 51% ownership of Cascas is $10.3-million.

The Canadian junior has BHP and Anglo American earning into some of its other projects in Ecuador.

Ecuador is a hot destination for junior copper prospectors. Major miners are taking less risky positions by entering into joint ventures or investing in juniors to gain exposure to projects in that country.

Edited by Creamer Media Reporter

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