Valor Resources (ASX:VAL) has entered into a binding earn-in agreement with global gold and copper producer Barrick Gold (TSE:ABX) to advance the exploration of the Charaque Project in Peru.
Under the agreement, Barrick has been granted a 5-year option providing the right to acquire a 70% interest in the Charaque Project for US$800,000 cash alongside US$3 million in exploration expenditure.
Upon granting of the option, Barrick will make an upfront cash payment of $200,000 and will make payments of $100,000 on each of the first, second, third, and fourth anniversary dates.
Additionally, during the first 2 years, Barrick guarantees a minimum expenditure of $500,000.
Valor reports Barrick may earn an additional 10% interest by exercising a second option with a $1 million cash payment and sole fund all costs and deliver to Valor a Prefeasibility Study (PFS).
Commenting on the agreement, Valor Resources Executive Chairman George Bauk says: “Barrick already holds land in the area, including tenements immediately adjacent to Charaque, and we look forward to them bringing their significant expertise to lead the exploration program while Valor retains strong, free-carried exposure to any discoveries.
“Barrick’s involvement in the ongoing exploration of the Charaque Project will enable Valor to focus efforts on advancing our flagship Picha Copper Project”
Barrick’s involvement in the ongoing exploration of the Charaque Project will enable Valor to focus efforts on advancing our flagship Picha Copper Project, where we expect to commence an inaugural drilling program in the September 2023 quarter.
This part of Peru has become a very active exploration hotspot, with several major deposits including San Gabriel and Berenguela polymetallic deposits. The 7.6 million ounce gold equivalent San Gabriel Gold-Copper Project — which lies just 7km southeast of Picha within the same mineralised corridor — is currently under development, with first production targeted for 2025.”
The purpose of this agreement secures the involvement of a sector-leading gold and copper producer and explorer to advance the exploration of the Charaque Project, allowing Valor to focus on the upcoming drilling of multiple advanced ‘large-scale’ copper targets at its flagship Picha Project.
Valor Resources is an exploration company focused on 2 key commodities: copper and uranium in Peru and Canada. The Charaque Project is located 30km northeast of Valor’s flagship project and comprises 8 claims covering an area of around 60km-square.
Write to Aaliyah Rogan at Mining.com.au
Images: Valor Resources Ltd
