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Southern Hemisphere signs new JV with Lundin

19th November 2013

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – Metals explorer Southern Hemisphere Mining has signed a new joint venture (JV) agreement in Chile with TSX-listed Lundin Mining Corporation, with the JV moving to secure two new projects.

The JV, known as the Los Rulos JV, would build on and expand the existing strategic alliance and JV with Lundin Mining at the Llahuin project, where Lundin was sole-funding exploration with the right to earn a 75% interest.

Southern Hemisphere MD Trevor Tennant noted on Tuesday that the Los Rulos JV had executed two option agreements to purchase the Armandino and Polvareda 2 copper/gold projects, located in central Chile.

“This is an important and strategic step in our relationship with Lundin Mining, which follows a highly successful collaboration over the past year at Llahuin. In recent months, we have jointly reviewed new areas in the Coquimbo region prospective for copper/gold, and after completing, mapping, channel sampling and IP surveys at both projects, selected Armadino and Polvareda 2 as the first of the acquisitions under this new JV.”

Tennant added that both projects represented stand-out opportunities and walk-up drilling targets.

“Both projects have extremely favourable geology and extensive surface copper mineralisation plus artisanal mining. Our initial work has been very encouraging and they tick every box for us in terms of geology, location and size potential. We are very much looking forward to getting on the ground to start drilling.”

Under the terms of the Los Rulos JV, Southern Hemisphere and Lundin would jointly explore and acquire prospects in the Coquimbo region. Lundin would initially hold a 50% interest in the JV, and would have the right to purchase a further 15% after two years, by paying Southern Hemisphere twice its expenditure to date.

Edited by Creamer Media Reporter

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