The Las Lomas prospect in northern Peru is the subject of an option agreement between Britannia Gold’s (VSE) half-owned Peruvian subsidiary, Minera Britannia Gold, and Noranda (TSE).
By financing exploration and development towards a feasibility study, Noranda can earn a half interest in the 14,400-hectare property, situated 18 km south of the Ecuadorean border.
The agreement calls for an expenditure of US$4 million and a cash payment of US$525,000, stretched out over the next four years. Once Noranda has completed the option requirements, it can purchase an additional 1% for a payment of US$10 million. Noranda can drop its option at any time, provided it gives at least 30 days’ notice to Britannia.
An induced-polarization geophysical survey, along with a soil geochemical survey, have outlined an anomaly 2 km in diameter, including a concentrated zone of copper, gold and molybdenum values in the southeastern portion. Britannia is planning an extensive drilling program and will operate the initial phase of work.
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