Solis Minerals (ASX:SLM) has entered a binding agreement to acquire up to 75% interest in the Cucho Copper Project in Peru through a staged earn-in.
The company will have the option to acquire whole interest in the project upon meeting the agreement requirements.
Solis will be required to pay an initial US$100,000 ($153,890) cash payment to complete due diligence in an exclusive 90 day period, before proceeding with a US$300,000 payment and the issue of $1 million worth in shares for a 20% stake.
Share price will be determined based on the 30-day volume weighted average price after the company has completed necessary surface activities.
Solis will then be required to pay an additional US$200,000 after receiving drill permits to maintain its equity interest.
A 5,000m drilling campaign, along with another US$200,000 cash payment and $2 million worth in shares will boost Solis’ stake up to a majority stake of 51%.
Achieving a JORC-compliant resource, minimum of 40 million tonnes @ 0.3% copper or 120,000 tonnes copper equivalent, and publishing a preliminary economic assessment will offer Solis a 60% equity stake, following the issue of $1.5 million worth in shares.
The final milestone payment sees Solis completing 10,000m of drilling and publishing a Prefeasibility Study, along with the issue of $3 million shares to reach a 75% stake. The company intends to complete this phase in 2027.
Solis has the opportunity to wholly acquire the project for US$10 million at any point in a seven year period.
As reported by Mining.com.au, the company is raising $5.9 million to fund acquisition costs for the Peru project.
Located in the Department of Ancash, Peru, the Cucho Project is considered prospective to host a “globally significant” copper deposit, following the identification of a potential large-scale porphyry copper-molybdenum system in a maiden drilling campaign in 2014.
Solis Minerals is a copper-focused junior explorer building a portfolio of assets around South America.
Write to Maddison Elliott at Mining.com.au
Images: Solis Minerals
