Auryn Resources Inc (TSE:AUG) (NYSEAMERICAN:AUG) has accelerated its purchase of six copper-gold concessions at Sombrero, Peru, tidying up its land ownership in the area and in a bid to streamline future permitting.
The properties were optioned four years ago from Alturas Minerals and a final payment due to Alturas was reduced to around US$3 million from US$5 million previously in consideration of Auryn's early exercise.
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"We view Sombrero as a district-scale exploration opportunity and are pleased to exercise the Alturas option agreement with a discount to the final payment," said Ivan Bebek, Auryn's executive chairman in a statement.
"Cleaning up our ownership will streamline the process of obtaining the remaining permits needed for drilling, which we anticipate in the first quarter of 2021," he added.
Bebek also noted the firm was working towards permitting the Nioc and Good Lucky targets within the Sombrero district to create a pipeline of drill-ready targets that could be advanced consecutively to avoid further work delays due to permitting.
"Results from ongoing surface work programs and updates on permitting advancements can be expected in September and October," he told investors.
To pay the final, discounted amount to Alturas, Auryn will issue 1.1 million common shares negotiated at C$2.90 along with US$621,466 in cash.
Auryn's Sombrero property lies in southern Peru, around 345 kilometers (km) southeast of Lima, and spans more than 130,000 hectares (ha) of which the Alturas option was for 4,600 ha.
Auryn reckons that Sombrero sits within a northwestern extension of the Andahualylas-Yauri copper-gold porphyry and skarn belt, which hosts the Las Bambas, Haquira, Los Chancas, Cotambambas, Constancia, Antapaccay and Tintaya deposits.
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