Coro Mining Corp. entered a binding letter of intent, through its local subsidiary, to acquire the Naguayan property in Chile from Cia Minera Naguayan SCM.
The property comprises a block of exploitation claims totaling 1,075 hectares located northeast and east of Coro Mining's 75%-owned Marimaca copper project.
Coro Mining can acquire the Naguayan claims by making increasing payments totaling US$6.5 million over 48 months, according to the Oct. 17 release. A definitive option agreement is expected to be executed shortly.
The claims are also subject to a 1.5% net smelter royalty, a third of which Coro Mining can purchase for US$2 million within one year of commercial production starting.
The company said the Naguayan acquisition forms part of its long-term strategy to consolidate mineral properties in the area.