Valor Resources Ltd. signed a joint venture option agreement with Kennecott Exploration Co., part of the Rio Tinto group, for the Berenguela copper-silver-manganese project in southeastern Peru.
Kennecott will pay US$700,000 before February to cover the due installment payable to SSR Mining Inc., spend US$2 million on exploration over 12 months and pay an additional US$3 million to form a 50/50 joint venture.
After the joint venture is formed, Kennecott may spend another US$5 million on the project within three years to increase its stake to 75%, according to a Jan. 14 release.
The Berenguela project hosts a measured, indicated and inferred JORC-compliant resource of 45.9 million tonnes at 86 g/t silver, 0.76% copper, 0.28% zinc and 5.1% manganese at a cutoff grade of 0.5% copper equivalent.
In early September 2018, Valor decided to proceed with a pre-feasibility study on the Berenguela silver project in Peru after reviewing the results of a scoping study, which concluded that the project is economically and technically viable.