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Miranda secures option to purchase another gold-copper project in Colombia

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Miranda secures option to purchase another gold-copper project in Colombia

Miranda Gold Corp. secured an option to purchase 100% of the Cauca gold-copper project in Colombia from private Colombian coal producer Carboandes.

The project covers 1,808 hectares, consists of one title and one application and will be the company's second project in the region in addition to the Mallama project.

The company can acquire the initial 51% stake by paying US$5.0 million within four years, another 19% by spending a further US$6.5 million, and the final 30% by delivering a sole-funded National Instrument 43-101-compliant preliminary economic assessment and agreeing to and paying the pro rata portion of the fair market value of the project.

Miranda will also pay an uncapped 1.5% net smelter returns royalty on all gold and gold equivalent ounces of production from the property, starting from closing of the fair market value agreement.

Additionally, the company will pay a resource bonus of US$5.00/oz of gold or gold equivalent, capped at US$4.5 million. The resource bonus will be payable in two tranches; the first 50% will be due on the date of the exercise of the first option, and the second 50% will be due 12 months later.

Miranda said June 18 that it expects to produce a maiden NI 43-101-compliant resource estimate for Cauca by 2019.