Camrova Resources Inc. said Dec. 24 it secured an option to acquire up to a 50% stake in certain mineral claims around and near privately held Armex Mining Corp.'s Goldstream project in British Columbia.
Camrova is required to pay C$5 million and incur C$45 million in exploration expenditures on the property over five years.
In the case the earn-in is terminated, if Camrova earned less than a 25% interest, Armex will have the right to repurchase the stake by repaying 100% of the cash payments plus 125% of the exploration expenditures.
The buyer is planning a C$1 million private placement to pay for the Goldstream deal and working capital.
Camrova is also in discussions with Armex to acquire certain mining assets in British Columbia, which include an earned interest in the property covered by the option and certain other mining and milling assets. It also announced talks with private Chilean miner Sociedad Contractual Minera Oximin to acquire assets in the country.
If the companies are able to agree, the option agreement will be terminated and replaced by the proposed acquisition agreement. Camrova added that the parties may not be able to reach agreement.