TORONTO (miningweekly.com) – Vancouver-based Pacific Rim Mining, which is in the midst of international arbitration brought against the government of El Salvador, has signed a binding letter of intent to buy a gold project in Panama.
The Remance project has similar geological characteristics to the El Dorado project, where Pacific Rim has been waiting for years to get mining permits.
"We have been evaluating and pursuing the Remance project for over nine months," Pacific Rim CEO Tom Shrake said in a statement.
“Remance hosts a large epithermal gold system and has many of the same characteristics that our El Dorado project in El Salvador exhibited when we first began work there.
“Like El Dorado, the Remance epithermal system appears to be largely preserved from surface erosion and virtually unexplored at depth,” Shrake said.
Unlike El Salvador, Panama is a “mining-friendly” jurisdiction, he added.
“We look forward to commencing exploration at Remance, unravelling the geologic puzzle and building value with the drill bit.
“In the meantime, we continue our efforts to resolve the permitting issues at El Dorado so that the value we have built in that project can be realised for the benefit of both shareholders and Salvadoran citizens," Shrake said.
Pacific Rim has agreed with seller Minera Clifton to sign a formal option agreement to buy 100% of the Remance project.
Pacific Rim can exercise the option by paying a total of $200 000 in tranches of $50 000 spread over ten months, issuing five-million shares to Minera Clifton , conducting specific drilling, environmental and metallurgical work on the project and paying $5-million in cash or shares when the option is exercised.
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