Toronto-listed Karmin Exploration Inc. agreed to sell its early stage Cushuro gold property in Peru to U.K.-based VI Mining PLC for US$27.5 million worth of shares. Deal closing is expected shortly, according to VI Mining.
Karmin said July 25 that it will continue to focus on its 30% stake in the joint venture over the Aripuana zinc-lead-copper-silver project in Brazil, after saying in April that it was looking at options for the development.
"We will continue our efforts to explore Karmin's strategic alternatives to finance this asset," Karmin President and CEO David Brace stated.
VI Mining will issue 5,753,138 shares to Karmin and conditionally agreed to issue more shares on the second anniversary of the deal closing. Karmin agreed not to sell any VI Mining shares gained through the deal until March 2, 2020.
According to VI Mining's July 27 statement, Cushuro comprises three claims covering 2,477 hectares adjacent to its historical Minaspampa silver-gold mine.
The company also owns the Rosario de Belen silver-gold mine in the country, which is currently on care and maintenance, and is carrying out detailed engineering work and metallurgical testing to start production.
It plans to start drilling at the two projects soon, with results to be incorporated into an updated technical report expected to be released by the end of 2018 or in early 2019.