TSX-V-listed Golden Arrow Resources has executed a definitive option agreement to acquire a 75% undivided interest in the Libanese project, in Santa Cruz, Argentina.
Libanesa is a 14 500-ha silver/gold project located at the north eastern margin of the Deseado Massif metallogenic province, about 40 km northwest of the Cerro Moro mine, operated by Yamana Gold.
Libanesa hosts several diversified geological, geochemical and geophysical supported targets and is permitted for drilling.
"Our team is eager to move forward on this highly prospective project and we are finalizing the field programmes to quickly and efficiently advance the targets towards discovery," commented Golden Arrow executive chairperson, president and CEO Joseph Grosso.
Golden Arrow is planning to mobilise an exploration team to Santa Cruz this month. The initial plan is to complete additional surface work, which may include geophysical surveying, with the intent of refining the targets for a drill programme to start in the first quarter of 2022.
Project generator Mirasol Resources has granted Golden Arrow an option to earn a 75% interest in Libanesa over six years by incurring exploration expenditures totalling $4-million and making cash payments totalling $1-million.
Upon completion of the option, Mirasol and Golden Arrow will hold 25% and 75%, respectively, in a participating joint venture company holding Libanesa.
If either party's equity interest is diluted below 10%, it will convert to a 2% net smelter return royalty.