Chakana Copper Corp. agreed to purchase a 1% net smelter royalty on the Soledad gold-copper-silver project in Peru owned by Condor Resources Inc.'s Minera Vertiente Del Sol SAC unit for US$565,000 in cash and shares.
Chakana has an existing option to acquire Soledad under a 2017 deal. Consideration includes a 2% NSR, which Chakana can halve for US$2 million.
With the royalty purchase, Chakana said March 19 that the NSR consideration will be reduced to 1%, which can be halved for US$1 million. The company will also be free from pre-royalty payment obligations.
If Chakana does not exercise its option, Condor can reduce Chakana's purchased NSR to 0.5% for US$1 million.
Chakana said the royalty purchase price was 70% cheaper compared to the original option deal, reducing the company's financial burden on the project.