The Golden Arrow Resources mining exploration company has completed an option agreement with Latin metals to acquire up to 100% interest in Huachi's copper gold properties in Argentina.
The agreement sets out the third Golden Arrow project to be selected in Argentina.
In accordance with the Definitive Option Terms, Latin Metals can earn a 75% interest in Huachi over four years.
This requires $ 1m (C $ 1.37m) in audit expenditure and $ 1m in cash payments to Golden Arrow.
After securing interest of 75%, Latin metals have a 90 -day supplemental right that allows for the remaining 25% acquisition for a $ 2m cash payment.
The payment must be made to Golden Arrow within the specified period. If Latin metals deteriorate right to add, a joint venture will be formed where Latin metals will hold a portion of 75%, with Golden Arrow keeping an interest of 25%.
Both sides will fund future spending based on their shares. If party interest drops below 15%, it converts to 1% net smelter return royalty (NSR).
Future funding will be proportional to the proportion of all parties. This ensures ongoing collaboration on the Huachi project.
Audit and cash payments will begin after approval of an environmental permit. The license will authorize drilling and other audit activities.
Huachi spans 3,500 hectares (HA) and is prospective for copper and gold. It is part of the 120,000ha Golden Arrow portfolio in Argentina.
Located in San Juan's province, Huachi's property is next to the Latin Esperanza Copper Gold Project.
President Golden Arrow and CEO of Nikolaos Cacos said: “This agreement sets out the third strategic option agreement that we have signed in recent years as part of our efforts to promote our non -core assets.
“Success on any of these projects is good for Golden Arrow and our shareholders. Huachi is now joining our Mogote copper gold project which is under option to mogot metals as part of their Filo Sur project, and our Caballos Copper Gold Project which is under option to Hanaq Argentina.”
“Golden Arrow Sign Option Deal for Argentina Copper Copper-Gold Project” was originally created and published by Mining technologyBrand owned by Globaldata.
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