Sign up USA
Proactive Investors - Run By Investors For Investors

Osisko Mining backs out of option at Tarsis Resources' Erika property

Osisko Mining backs out of option at Tarsis Resources' Erika property

Tarsis Resources (CVE:TCC) said late Friday that Osisko Mining has unexpectedly decided not to continue with exploration at its Erika property in Mexico, as per an option agreement signed earlier this year. As a result, Tarsis will maintain its 100% interest in the property going forward. 

In the release, Tarsis said the return of the property at this time was a surprise move, considering Osisko was drilling on the asset in November and December. The junior company also noted that its personnel visited the project site and saw two drills on November 26 and 27. 

During the option period, Osisko completed detailed geological mapping and geochemical sampling over the summer, with specific drill targets identified in addition to those already recommended by Tarsis. 

A preliminary drill program was also finished in the fall of this year, Tarsis said, that was planned to consist of up to 3,000 metres and eight holes.  The company said it has not yet received any results from this campaign. 

Under the terms of the option deal, Osisko had to spend $500,000 on exploration at Erika before February of next year as part of its earn-in commitment, with the mining giant having spent a total of $339,000 up to September 30, before the drill program started.

In order to have earned the agreed 51% stake, Osisko would have had to make staged cash payments to Tarsis of $1.0 million, and spend $4.0 million on exploration over four years. 

Tarsis said it is in the process of collecting new data that was assembled on the project, and will determine the most effective way to advance the asset. 

The Erika property, in the Guerrero Gold Belt, covers approximately 16,000 hectares, and can be accessed by paved road via Federal Highway 95, which crosses the eastern boundary of the claims. Acapulco is 150 km south of the property. 

Tarsis functions on a prospect generator model, which means it seeks out prospective exploration projects to acquire, and then vends or options them to partners for development. This model has allowed the junior to raise cash in an otherwise tough market.          

The company just last week closed a bolstered $0.36 million financing, with proceeds to be used for its prospect generation efforts in the Yukon, Mexico and the U.S., as well as for early-stage work to advance its existing properties to joint venture status.  It has been able to raise funds from some marquee names in the industry, including the likes of Kinross Gold (TSE:K), Sprott's Rick Rule and Almaden Minerals.

View full TCC profile View Profile

Tarsis Resources Timeline

Related Articles

Parkway German map
March 05 2018
The company has a 26% interest in highly-rated German potash assets, 7.3 million Lithium Australia NL (ASX:LIT) shares and $2 million in cash.
Picture of area surrounding Paradox Lithium Project
May 06 2018
Cloud, Cane and LC South will be part of Anson's Paradox project with the claims being close to oil wells with historically recorded lithium values.
Drilling rig at Mt Venn project
May 08 2018
The project is 30 kilometres west of the Gruyere gold deposit in the Eastern Goldfields district of Western Australia.

No investment advice

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You understand that the Company receives either monetary or securities compensation for our services. We stand to benefit from any volume this write-up may generate.

You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

Copyright ©, 2018. All Rights Reserved - Proactive Investors North America Inc., Proactive Investors LLC

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use