IN BRIEF: Ajax Resources agrees to buy interest in Paguanta project
Ajax Resources PLC - London-based natural resources investment company - Agrees terms to conditionally buy a 75% interest in the Paguanta project, a copper-gold project in the Tarapaca region of northern Chile, which is currently owned by Asara Resources Ltd. Says Paguanta is an advanced exploration-stage deposit, historically recognised for its silver production. It has silver, zinc and lead resources and "significant identified potential" for copper and gold. The firms have until November 25 to negotiate the final terms of the contract and complete. Within 15 days of completion, Ajax will pay USD50,000 in cash and a further USD100,000 worth of shares. A further USD500,000 will be payable upon the definition of a proved reserve of more than 25 million tonnes of 5% or more zinc equivalent. Another USD500,000 will be required when a reserve exceeding 5 million tonnes of copper is defined. Asara will retain a 1% net smelter royalty, capped at a maximum of USD850,000 and subject to the average zinc price during the previous two quarters exceeding USD2,600 per metric tonne. Read More