Latin signs JV deal in Peru
PERTH (miningweekly.com) – Minerals explorer Latin Resources has signed a farm-in agreement with Peruvian firm Compania Mineral Zahena SAC (CMZ) over its Ilo Norte iron-ore project.
Under the terms of the agreement, CMZ could earn a 70% interest in the Ilo Norte project for $3.65-million in cash and a minimum exploration spend of $4-million, as well as the execution of a 4 800 m diamond drilling programme valued at $1.35-million.
The first 10 000 m of diamond drilling has to be completed within 18 months of the final agreement.
“We are extremely pleased to have reached these terms with CMZ that will allow for the short-term realisation of value at Ilo Norte through a thorough drilling campaign that is ready to drill on a very exciting target,” said Latin MD Chris Gale.
He pointed out that the Ilo Norte project was Latin’s most advanced exploration property in the south of Peru, and is located in the heart of a major copper producing region, where some 125-billion pounds of contained copper was in reserve and resource.
Ilo Norte consists of some 7 300 ha, and runs over seven concession blocks.
Gale said on Friday that Latin would continue to use the Ilo Norte model to both secure funding for the company, and to unlock value through the exploration of its extensive ground-holdings.
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