Diversified major Anglo American has agreed to continue negotiations with exploration and development company Luminex to amend the terms of its earn-in of the Pegasus project, in Ecuador.
Anglo American last month issued a withdrawal notice to Luminex, reportedly over a delay in receiving surface access to drill its preferred target at Pegasus.
The parties have agreed to suspend the effect of the withdrawal notice for 45 days to allow the negotiation of the amendments to realign the terms of the joint venture to the mutual satisfaction of both parties,” Luminex said.
Luminex CEO Marshall Kovall last month expressed his disappointment in the continued drilling delays at Pegasus. However, he said that Luminex continues to believe the area offers numerous attractive copper porphyry targets.
“Anglo American has spent approximately $26-million as of June 30, 2023, which can pave the way for either Luminex or a new partner to carry on the high-quality work that has been completed so far,” he noted.
Luminex and Anglo American may engage in discussion to realign the earn-in agreement terms given Anglo American's spend to date, 25% ownership in Pegasus and in-country team. The next concession payments for Pegasus are due in March 2024.
Anglo American was the operator of the project from 2018 to 2023.