FMR Resources (ASX:FMR) has entered into a conditional binding term sheet and secured exclusive access to the La Lorena Project in central Chile.
The term sheet, entered into with two private individuals, grants FMR a five-year option to purchase the concessions hosting the La Martuca and Esperanza Prospects.
The term sheet outlines a US$50,000 ($69,090.2) signing fee and option fees of US$50,000 annually for years one and two of the option period, and a yearly payment of US$60,000 for years three to five of the option period.
Under the terms of the agreement, FMR has the right to exercise the option to wholly acquire all legal and beneficial interest in the projects at any time for a payment of US$250,000, along with any outstanding amounts owed within the five-year period.
In addition to this term sheet, FMR has entered into exclusivity agreements with other surrounding private concession holders for the ability to conduct exploration due diligence over a period of six months.
The La Lorena Project covers an area of around 9km by 6km and is considered highly prospective for epithermal and porphyry copper-gold-molybdenite mineralisation.
As part of due diligence, FMR has conducted reconnaissance rock chip sampling at La Martuca and Los Morados, confirming the presence of ‘high-grade’ primary oxide copper mineralisation.
The company has now commenced a rock chip sampling program across the entirety of the project.
It notes that no drilling has ever been conducted within the La Lorena Project, and the project presents a “compelling exploration opportunity” for FRM.
FMR Resources is focused on ‘high-impact’ porphyry copper discoveries in Chile, with a goal to develop critical minerals projects to help power the global clean energy transition.
Write to Amy Rotman at Mining.com.au
Images: FMR Resources
