Mirasol Resources Ltd. said Oct. 7 that it granted First Quantum Minerals Ltd. the option to earn an 80% stake in the 1,200-hectare Coronación copper-gold project in Chile.
Under the six-year agreement, First Quantum should make annual cash payments totaling US$875,000, complete at least 10,000 meters of drilling, and deliver a pre-feasibility study report.
First Quantum, which will be the operator during the option period, is committed to completing a 3,000-meter drilling and systematic geophysical program on the project over the first 24 months of the agreement. Following this, First Quantum is required to spend a minimum of US$500,000 per year over the term of the agreement.
Following the completion of the 80% earn-in, First Quantum will have a one-time option to acquire the remaining 20% on terms to be negotiated between the parties. If not exercised, the parties will form a joint venture to fund the project development.
The project is part of Mirasol's ongoing Atacama-Puna generative program.
