Titan Minerals Ltd. executed a binding agreement for an exclusive option to acquire up to an 85% interest in the Las Antas gold project in southern Peru from Management Environmental Solutions SA.
The company can earn an initial 60% stake by funding US$2 million of exploration within two years and an additional 25% interest after completing certain milestones, according to a Jan. 14 release.
A joint venture will form upon Titan acquiring the initial 60%. Titan will then sole-fund a pre-feasibility study, increasing its stake by 10%, and will have an option to purchase an additional 15% through three tranches for a total of US$2.5 million.
The vendor will retain a 15% nondiluted interest in the project, subject to financing by the joint venture, and its contributions will be covered by loan funding from Titan.
The company will retain a right of first refusal over the vendor's interest in the project.
The environmental permitting process for the project has started, and the company plans to start drilling in the June quarter.