Aim- and TSX-listed mining group Atalaya continues to expand its footprint in the Iberian pyrite belt, announcing on Tuesday a memorandum of understanding (MoU) with a Spanish company to acquire three permits, which will be collectively referred to as Proyecto Riotinto East.
The project, following on from the Masa Valverde acquisition in October last year, has the potential to add significant additional resources for Atalaya, said CEO Alberto Lavandeira.
Two of the three permits, Peñas Blancas and Cerro Negro, are located immediately to the east of Atalaya’s Proyecto Riotinto and share a similar stratigraphic and structural setting.
The Admirable mine, with historic production of three-million tonnes at 1% copper, is situated close to the northern limit of the Cerro Negro permit.
The third permit, Herreros, is located 10 km northeast of Canadian miner First Quantum’s Las Cruces copper mine in a similar geological setting.
“With the MoU for Proyecto Riotinto East, Atalaya expands its access to one of the most prospective areas of the Iberian pyrite belt. Surprisingly, the area has not been the subject of modern and systematic exploration to date, in particular, the Peñas Blancas and Cerro Negro investigation permits since they cover the potential east extensions of both the Riotinto and Aguas Teñidas-La Magdalena trends,” said Lavandeira.
The MoU provides an initial exclusivity period of three years and is renewable for additional years in order for Atalaya to carry out all necessary exploration work and studies on Proyecto Riotinto East. Atalaya will be the operator during the exclusivity period and is responsible for all administrative and exploration activities and costs, as well as for the maintenance costs associated with the permits.
A minimum investment of €100 000 must be incurred for each permit during the first year. Once that investment has been incurred, Atalaya may exercise its purchase option at any time on any of the permits, either individually or collectively.