Southern Hemisphere Mining Ltd. entered an option with Hudbay Minerals Inc., allowing the latter to earn up to a 70% interest in the Llahuin copper-gold project in Chile.
The agreement between the company's subsidiary Minera Llahuin SCM and Hudbay's unit HudBay Chile SpA can be exercised by paying US$5.8 million over five years.
HudBay Chile will also be required to spend at least US$3.5 million on exploration during the first three years, according to the Feb. 8 release.
Southern Hemisphere announced a measured and indicated resource for the Llahuin project in 2013 of 149 million tonnes at 0.29% copper, 0.12 g/t of gold and 0.008% molybdenum, at a 0.28% copper equivalent cut-off.
