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.
READ: Mirasol Resources gets started on field exploration at its Inca gold project in Chile, outlines 2020 exploration plans on project portolio
"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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