Project generator Avrupa Minerals Ltd (CVE:ARU) has struck a deal, which sees it regain 100% of the Alvalade VMS (volcanogenic massive sulphide) copper, lead, zinc project in the Iberian pyrite belt of southern Portugal.
It has inked agreements with two former partners that transfer the outstanding 60% back to Avrupa (which had 40%) in return for certain debts being forgiven for one and future success-based payments to another.
This amounts to €160,000 in debts. Avrupa now assumes a deposit on the project of €75,000 and make the following payments to the initial partner in return for increasing its interest in the project to 100%.
Avrupa must pay cash of US$250,000 on the filing of an initial NI 43-101 resource estimate, and make staged cash payments totalling US$1mln on the completion of an NI 43-101 feasibility study meeting certain minimum criteria. It must also make staged cash payments totalling US$3mln on the start of commercial production.
Avrupa acquired Alvalade in 2010 and initially optioned it out in 2012, but has been the operator since then.
An initial hole at the Sesmarias target hit 10.85 metres of 1.81% copper, 2.57% lead and 4.38% zinc.
To date, 54 holes have been drilled by Avrupa for 21,121 metres. More than 10 hit sulphides with various grades of copper, lead and zinc.
The firm is now reviewing all of the previous data on the Alvalade project and will report its plans shortly. There are at least four other separate targets in the immediate Sesmarias area.
These are a significant target in the Pombal area 15 kilometres southeast of Sesmarias and several targets at the Monte da Bela Vista stockwork discovery located about 10 kilometres north of Sesmarias, all on the Neves Corvo mineral trend.
"The Alvalade VMS project in mining friendly Portugal, where Avrupa has made a significant discovery over a large area containing copper, lead, zinc along with some gold and silver, has very large potential," said Avrupa director Mark Brown.
"Recovering 100% ownership, with the only payments being reduced and being success-based, allows Avrupa to open up several options to move this project ahead rapidly to an exciting next phase of drilling and further discovery."
Avrupa shares closed unchanged at $0.095 yesterday.