EHR Resources Ltd. and Eloro Resources Ltd. will divide the second stage of a previously signed earn-in agreement into two components to increase the former's stake in the La Victoria gold-silver project in Peru by 15% following negotiations to restructure the deal.
In a joint statement on March 2, the revised agreement stipulated that the first half of the second phase will require EHR to incur a C$1.6 million exploration spend on or before June 30 to earn an additional 8% interest.
Upon meeting the first half requirement, EHR may give notice to exercise the second half of the second phase, where it will earn an additional 7% by incurring an additional C$1.4 million spend on or before Dec. 31.
The stop dates for each earn-in stage are subject to an extension, should permitting be delayed.
Previously, EHR was to increase its stake to 25% by spending an additional C$3 million by July 31.
Upon meeting one or both components of stage two, the companies will form a joint venture, based on their respective interests in La Victoria, with Eloro assigned as the project's operator.
To date, EHR holds a 10% interest in the project after completing the first phase of the earn-in in December 2017.
