Junior producer Aurex Resources (TSE) has restructured its agreement to acquire a 70% interest in Compania Minera San Esteban Primera.
San Esteban owns and operates three producing copper-gold mines in the Copiapo area, approximately 850 km north of Santiago, Chile. Last year, the operations produced 4.1 million lb. copper and 13,059 oz. gold from 268,922 tonnes of ore averaging 0.96% copper and 1.84 grams gold per tonne.
For 1995, the 750-tonne-per-day processing plant is expected to produce 4.7 million lb. copper and 13,900 oz. gold from 274,800 tonnes averaging 1% copper and 1.9 grams gold.
Proven and probable reserves for the three mines are calculated at 1.7 million tonnes grading 1% copper and 1.7 grams gold.
Under the previous agreement, Aurex had acquired a 70% interest in San Esteban, but was responsible for three staged payments totalling US$1.6 million over a 6-month period beginning this July.
Under the revised agreement, Aurex holds a 40% interest with an option to acquire a further 30% by paying US$2 million in four installments between October of this year and March, 1997.
Aurex can elect to increase its interest to 100% from 70% through a buy-out price of US$2 million, provided it is paid before September 30, 1997. After this date, the price will increase by US$500,000 every 6 months for a maximum of US$7 million, payable on September 30, 2002.
The amended agreement also calls for San Esteban to repay Aurex US$1 million in shareholder advances.
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