By Reuben Adams
LATIN Resources subsidiary PLR will collect $1 million cash from project partner Compania Minera Zahena Sac (Zahena) in exchange for 70 per cent of the prospective Ilo Este project in Peru.
As part of the deal, Zahena is expected to complete 5000m of diamond drilling within six months, another 3000m within 12 months, and a further 3000m – for a total of 11,000m within 18 months.
With recent exploration showing signs of an enormous copper (plus silver and gold) porphyry system at Ilo Este, this key deal could provide the exploration strength required to move the project towards definitive feasibility study stage.
A Newco will be formed once the 70 per cent share has been transferred to Zahena.
PLR will also receive an ‘exploration success’ payment of US$5 million if a successful definitive feasibility study is produced for Ilo Este.
“We are very happy to continue working with Zahena at Ilo Este, a partner who has proven their drilling capacity at [adjacent project] Ilo Norte,” Latin managing director Chris Gale said.
“Permit modification at Ilo Este is now Latin’s primary focus to allow drilling to recommence under Zahena’s control as soon as possible.”