PERTH (miningweekly.com) – Diversified miner South32 has struck an earn-in agreement with ASX-listed junior Inca Minerals over its Riqueza copper/zinc, in Peru, finalising a deal more than a year in the making.
South32 could earn an initial 60% interest in the Riqueza project by spending $9-million on exploration over a four-year period. The company could then increase this stake by 10% through sole-funding a prefeasibility study.
South32 would be required to spend a minimum of $1.7-million in the first year of the earn-in agreement, and could elect to provide the entire earn-in fee in less than four years.
Inca will act as project operator unless South32 elects to assume operatorship, after its first stage earn-in.
Exploration at Riqueza will start with remote sensing and an extensive geochemical survey covering priority targets in the north-east of the project area. The geochemical survey would then extend over the entire project area while geological mapping will also be undertaken.