Regulus Resources Inc. said Jan. 24 that its wholly owned Peruvian subsidiary, Southern Legacy Peru SAC, executed a definitive agreement with Compañía de Minas Buenaventura SAA unit Compania Minera Coimolache SA to jointly explore the AntaKori copper-gold project in northern Peru.
Regulus acquired the AntaKori property in May 2014, when it agreed to merge with Southern Legacy Minerals Inc.
Coimolache operates the Tantahuatay gold-silver mine, which sits immediately next to the southern margin of the AntaKori property. Buenaventura owns about 40% stake in Coimolache and acts as operator, while Southern Copper Corp. holds a 44% interest.
In addition, a memorandum of understanding to complete a parallel definitive agreement with Compania Minera Colquirrumi SA was extended to March 30 to enable additional legal review. Colquirrumi is a wholly owned Buenaventura subsidiary.
The Colquirrumi agreement would enable Regulus to earn up to a 70% interest in a large area of mining concessions located immediately to the north and east of the AntaKori mining concessions. Regulus noted that the completion of the Colquirrumi agreement is required to maintain the Coimolache agreement in good standing.
The definitive agreement with Coimolache follows a binding memorandum of understanding in May 2016, outlining mutual access, mutual rights of expansion and joint exploration with an aim to determine the size and nature of the AntaKori copper-gold deposit, as well as the expansion of the Tantahuatay mine.
The companies plan to start a drill program totaling 15,000 meters to 18,000 meters at AntaKori by early March.