New Pacific Metals Corp (CVE:NUAG) (OTCMKTS:NUMPF) updated Monday on its agreement over land surrounding its flagship 3.17 sq km Silver Sand project in Bolivia.
The project is owned by Alcira, which was bought by New Pacific in 2017.
In January last year, New Pacific announced that Alcira had struck a mining production contract (MPC) with Corporación Minera de Bolivia (COMIBOL), granting Alcira the right to carry out exploration, mining, and production activities in the areas adjoining the Silver Sand project.
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The MPC covers up to a huge 56.9098 sq km and involves two separate areas.
The first area lies to the south and west of the Silver Sand project, while the second area includes additional properties to the north, the east and the south.
The MPC was approved by Bolivia’s Ministry of Mining and Metallurgy in January last year, but remains subject to ratification and approval by the Plurinational Legislative Assembly of Bolivia, the firm noted.
The major terms of the MPC are:
- Alcira will commit to a minimum US$5,935,000 risk exploration investment during the first five years of the MPC for mineral exploration and related activities and make a monthly cash payment of US$10,000 to COMIBOL.
- If an economic mineral deposit is discovered, Alcira will cover all cost of further exploration, environmental studies, engineering studies, pre-feasibility and feasibility studies as well as development and production.
- If commercial production commences, COMIBOL will receive a 4% gross sales value of all minerals produced from the areas covered under the MPC.
While waiting for the MPC being ratified, approved, or re-worked, New Pacific will focus on defining an economic resource at its 100%-owned Silver Sand project, it noted.
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