Nubian Resources Ltd. said Aug. 14 that it signed a binding letter of intent to acquire up to a 100% stake in the Rio Pampas copper-gold project in Peru.

Under the terms, Nubian paid the vendors a US$50,000 deposit and has agreed to pay the same amount annually for 10 years from the signing of the definitive agreement. The miner also committed to investing US$500,000 in the Rio Pampas' development work in the first 12 months to earn an initial 51% stake in the project.

To increase its ownership to 60%, Nubian will spend an additional US$1 million on the project in the first five years. A further US$2 million spend in exploration expenditures and a US$2 million payment to the vendors will then take the company's stakes in Rio Pampas to 80%.

Nubian can take full ownership of the project after paying the US$9 million balance to the vendors in the final two years of the agreement.

The company expects to execute the deal's definitive documentation within 90 days.