Peruvian Metals (TSXV: PER) and Rio Silver (TSX.V: RYO) signed a memorandum of understanding to jointly explore the Palta Dorada Au-Ag-Cu property by initially conducting a detailed sampling and mapping program along with a bulk sampling campaign and processing the mineral at Peruvian Metals’ majority-owned Aguila Norte processing plant.
In a press release, the Canadian companies explained that the MOU establishes a joint effort to explore and develop the property and that any sales from metal concentrate produced from the bulk sampling activity will be shared between both of them.
Limited surface mapping and sampling has identified several oxide Au-Ag veins hosted in granodioritic rocks at Palta Dorada
“In addition, all operational expenses related to the bulk sampling will also be shared between the companies,” the media brief states. “Peruvian Metals’ 80%-owned plant will charge the joint effort commercial mineral processing rates on a similar basis to its other clients for processing the bulk samples.”
According to the miners, Peruvian Metals will also have the option to earn a 50% ownership in the property. Equal ownership will occur once the Toronto-based firm has matched Rio Silver’s acquisition price of $250,000 by assuming all capital and exploration expenditures.
The Palta Dorada Au-Ag-Cu property is located in the Ancash Mining Department in northern Peru and covers an area of approximately 1200 hectares.