Valterra Resource Corp. agreed to acquire the Los Reyes property, comprising two claims prospective for copper and gold, covering 45 hectares in Chihuahua, Mexico.

The company said June 18 that it can acquire the project by making staged payments totaling US$4 million by August 2023 through its Mexican subsidiary Minera Reyterra SA de CV.

The Los Reyes project will also be subject to a 2% royalty.

Valterra is planning surface mapping and sampling ahead of a short geophysical program over an initial target area. The target consists of skarn mineralization and measures about 800 meters long and 100 meters wide.

The company will also complete 3,000 meters of drilling to test a 600-meter strike length of the target area.

Additional work will investigate mineralization at depth and a potential porphyry source for the shallow skarn zone.