Condor Resources Inc. on Jan. 30 said Compania Minera Casapalca SA terminated its earn-in option over Condor's Soledad and Ocros copper projects in Peru, effective Feb. 3.
The companies signed the earn-in deal over Soledad in February 2016, and the option agreement over Ocros was signed about two months after. Casapalca has completed the required 3,000 meters of aggregate diamond drilling at the two projects under both deals.
According to Condor President Lyle Davis, the company believes that the termination was driven by Casapalca's change in corporate strategy to work on their wholly owned projects.
In the same statement, Condor said it signed a memorandum of understanding with Compania Minera Virgen de la Merced SAC, or Merced, giving the latter the option to earn up to a 70% interest in the Ocros project over four years by making cash payments totaling US$550,000 and completing 10,000 meters of drilling at the project.
The MOU stipulates a US$75,000 payment upon execution of the comprehensive agreement and a mandatory first-year work program comprising 2,000 meters of drilling.
Condor's option deal with Merced remains subject to the termination of Casapalca's rights and receipt of clear title of the Ocros concessions.