Rio Silver Inc. agreed to acquire the Palta Dorada gold-silver-copper property in northern Peru and entered into a memorandum of understanding with Peruvian Metals Corp. for joint exploration and development of the project.
The companies will initially conduct a detailed sampling and mapping program and a bulk sampling campaign and will process the mineral at Peruvian Metals' 80%-owned Aguila Norte processing plant in Peru at commercial rates.
Peruvian Metals can secure a 50% ownership of the about 1,200-hectare property after matching Rio Silver's US$250,000 acquisition price by assuming all capital and exploration expenditures.
The companies will share revenue from sales of metal concentrates produced from the bulk sampling activity and all operational expenses.
Peruvian Metals said Jan. 9 that it will operate the joint venture and secure all permits for exploration and extraction of the bulk sample, which is expected to start in the first quarter.