Medinah MineralsInc. said April 5 that it signed a memorandum of understanding withAURYN Mining Chile SpAregarding the sale of the former's Altosde Lipangue group of gold-copper mining claims.
The deal calls for AURYN to assume all rights on the projectin exchange for a 25% stake in the company. AURYN will also grant an option to Medinahto acquire an additional 5% in AURYN for US$50 million within five years.
In conjunction with three previously reported acquisitions ofnearby exploration entities, this MOU effectively amalgamates 100% of the Altosde Lipangue project claims.
On completion of the deal, all previous option agreements willbe canceled. Medinah optioned85% of the project to AURYN in 2014.
The transaction is expected to be formalized in the week of April30.