Mirasol Resources Ltd (CVE:MRZ) (OTCPINK:MRZLF), the project generator focused on the Americas said it has now inked a definitive deal to option out its Nord project in Chile.
It was signed with Encantada SpA (Encantada), an affiliate of Mineria Activa, a Chilean, mining-focused, private equity group with more than US$150 million in assets under management.
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"We are pleased to close this transaction after the successful completion of the technical and legal due diligence," said Mirasol's CEO Norm Pitcher in a statement on Tuesday. "Mirasol has monetized its interest in a non-core project for up to US$3 million cash payments and the creation of a new 2% NSR royalty on prospective exploration claims located near a development project."
Under the terms of the deal, Encantada has the option to earn 100% of the project over four years by making staged cash payments totaling US$3 million and incurring at least US$500,000 in exploration expenditures over the first two years.
Upon completing the option obligations, Encantada will have earned a 100% interest in the project and Mirasol will retain a 2% net smelter return (NSR) royalty. Encantada has the right to buy back 0.5% of the royalty for US$3 million, exercisable within eight years.
The Nord project spans 1,967 hectares (ha) and lies in Region III of Chile within the Exploradora district and within the Eocene-Oligocene Copper Porphyry belt. It lies adjacent to the Ciclon-Exploradora polymetallic-epithermal project which is currently being advanced toward production by Mineria.
The group is now working on a definitive feasibility study following an engineering study and resource estimate in 2019.
At the Nord Project, Encantada intends to complete an initial 6-month fieldwork program and if results are positive, an initial scout drill program will be completed to test the best targets, expected to occur in the second quarter of 2021.
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