Fidelity Minerals Corp (CVE:FMN) (OTCMKTS:SAIDF) strengthened its Peruvian presence with the acquisition of two new gold projects in the northern part of the country.
The Vancouver-based company announced Tuesday that it has acquired 100% interest in the Las Brujas and Cerro El Bronce projects, located in prolific gold-copper districts that are subject to active exploration by major mining companies.
The two new early-stage projects host significant mineralization. Las Brujas spans 1,900 hectares within 10 kilometres of the La Zanja gold mine. The project has extensive mineralization and anomalous gold values reported from three different zones.
Cerro El Bronce consists of two concessions totaling 600 hectares in an area surrounded by concessions controlled by gold miners such as Newmont, which is actively exploring on its property. Historical exploration at Cerro El Bronce has revealed copper and gold mineralization, with previous exploration showing relatively shallow high-grade gold resources.
CEO Ian Graham believes the acquisition gives Fidelity an “attractive opportunity” to advance the projects in the near-term.
“Extensive shallow high-grade gold projects are becoming increasingly difficult to find, and in a resurgent gold price environment, will provide Fidelity Minerals with abundant optionality,” he said in a statement.
“Whilst it is still early days, we are also very excited by copper prospectivity of these projects, with indications of porphyritic copper mineralization at the Las Brujas project and high-grade surface sample at the Cerro El Bronce.”
The acquisition gives Fidelity a foothold in northern Peru in an area that has seen an increased amount of attention of late, according to the junior project generator.
Under the terms of the acquisition, the company will complete the transaction through its Peruvian subsidiary. As partial consideration for the acquisitions, Fidelity has agreed to take on responsibility for maintenance and renewal of the concessions and will assume operational duties such as exploration work.
In the event of a future sale, the unnamed vendors will receive 10% of the cash profits determined by the sale price minus total expenditures assumed by Fidelity. If the junior company makes the decision to mine the property, Fidelity and the vendors will enter into a 75:25 joint venture agreement.
Shares of Fidelity were trading at C$0.05 in Toronto on Tuesday morning.
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