Mirasol Resources Ltd (CVE:MRZ) (OTCMKTS:MRZLF), the project generator focused on the Americas, has inked a deal to option out its Nord project in Chile.
The firm signed a memorandum of understanding with Mineria Activa granting the latter the option to buy 100% of the asset over four years.
READ: Mirasol Resources signs agreement with First Quantum for its Coronación Copper/Gold Project in northern Chile
Mineria is a Chilean, mining-focused, private equity fund with over US$150 million in assets under management.
The property lies adjacent to the Ciclon-Exploradora polymetallic-epithermal project which is currently being advanced toward production by Mineria.
Mirasol says the transaction rationalizes its exploration portfolio and monetizes its interest in Nord while it retains a 2% net smelter return (NSR) royalty on the project. Mirasol can buy back another 0.5% of the NSR within eight years of the signing of the definitive agreement for US$3 million.
"We are pleased to sign this MOU with Mineria Activa," said Mirasol's president and CEO Norm Pitcher.
"Given their close proximity to our Nord project, Minera is a logical buyer and we look forward to them exploring on the Nord project for potential extension or parallel structures to the known mineralization as well as other mineralization styles in this prospective land package."
To earn 100% of the Nord project, Mineria must:
- Make annual cash payments totalling US$3 million
- On signing of a definitive agreement, pay US$50,000
- 1st anniversary: US$200,000
- 2nd anniversary: US$400,000
- 3rd anniversary: US$600,000
- 4th anniversary: US$ 1.75 million
- Commit to complete at least US$500,000 on exploration over the first 2 years of the option period.
Mirasol also today reported that it had completed a six hole, 1,685 metre reverse circulation (RC) drill program on its Indra property in Chile, under the option to joint venture agreement with Hochschild Mining.
Assays were received and no mineralization was encountered in the drilling, the firm said.
The results have been provided to Hochschild Mining and the companies are discussing the next step for this project, it added.
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