Carube Copper Corp (CVE:CUC) (OTCMKTS:CARCF) revealed it had successfully completed the "company transforming" all-paper deal to buy private explorer Latin America Resource Group (LARG) after striking a definitive agreement.
The transaction was first reported last August and the deal has now been approved by the Toronto venture exchange. The consolidated firm will hold a range of quality copper gold assets from early stage through to delineation drilling.
READ: Carube Copper shares surge as it's set to acquire Latin America Resource Group, gain foothold in Peru
LARG's main asset is the 5,696 hectare Jasperoide copper-gold project in the highly prospective Andahuaylas-Yauri belt of Peru, host to several large producing copper-gold-molybdenum deposits and mines.
"With an experienced management team and a proven track record of building successful mining companies, we can now focus on creating significant value for our shareholders," said Carube CEO Stephen Hughes.
"The initial exploration program we have designed for Jasperoide aims to fast track the project to resource delineation drilling stage and will produce strong news flow throughout 2020. Carube is also continuing to advance and commercialise value at its high-quality pipeline of advanced-stage and drill ready gold-copper projects in Jamaica and Canada."
LARG shareholders will receive 3.1 Carube shares for each LARG share held on August 26 last year and they will hold around 28% of Carube.
Jasperoide lies around 50km east of Minmetal's Las Bambas mine and First Quantum Minerals undeveloped Haquira deposit. It is 40 km northwest of Hudbay's Constancia mine and 100 km northwest of Glencore's Antapaccay mine.
Drilling by previous explorers has hit intervals of copper-gold mineralisation. Carube's due diligence has also identified the potential for porphyry-style copper-gold mineralization, the firm said in Tuesday's statement.
At Jasperoide, LARG has an option to earn a majority interest in five claims and is in the process of transferring a 100% interest in eight to its wholly-owned Peruvian subsidiary.
For the optioned claims, LARG must spend US$5 million on exploration (US$1.7 million spent to date) and pay US$2 million (US$60,000 paid to date) over the next four years to earn 51% in three concessions and 100% in two.
It is expected that LARG can earn up to 100% of the three concessions by diluting the underlying vendor to a 1.5% royalty.
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