11th Jun 2015 09:48
LONDON (Alliance News) - Mariana Resources Ltd Thursday said it has signed a subscription and option agreement with a Chilean company to advance its gold and silver Doña Ines project and its copper, molybdenum and gold Exploradora East project.
The agreement has been signed with Asset Chile Exploracian Minera Fondo de Inversian Privado, and under the deal, Asset Chile will earn up to a 50% interest in the two projects, which are currently wholly-owned by Mariana. In return, Asset Chile will fund up to USD1.7 million of exploration, which will be conducted by Mariana.
The Phase I work programme will involve further target generation and first-pass reverse circulation drill testing of priority targets at both projects. Asset Chile will contribute funding of USD250,000 to Phase I alongside Mariana's contribution of USD50,000. Asset Chile will be awarded a 20% stake after Phase I is completed.
Phase II would contemplate resource definition drilling on any potential discovery identified during the first phase. Asset Chile will solely fund the second phase, contributing up to USD200,000 to increase its stake to 40%.
Asset Chile will be awarded the total 50% stake once it has contributed a further USD1.2 million after the two second phases. Asset Chile has the option not to proceed any further past the second phase of drilling. If it does not decide to proceed, it will retain its 40% interest in the projects.
Mariana shares were up 3.1% to 2.16 pence per share on Thursday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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