By Fiona MacDonald
Proactive Investors
Colombia Crest Gold announced Thursday the signing of a Letter of Intent with Affinity Gold Corp. that would see the Vancouver-based explorer earning a 30 per cent interest in Peruvian gold-silver project, Machacala.
Under the terms of the Letter of Intent, Colombia Crest, which maintains a focus on South American projects, can earn up to 30 per cent legal and beneficial interest in the project in exchange for a capital investment of $1,500,000 over the course of twelve months following the signing of the Definitive Agreement.
The move signals a continuation of the company’s strategy of diversificationof territories , following on from the sale of Bolivian property San Simon earlier this year. The sale, to Bolivian company Steinmar, for a payments totalling $5 million, was touted as a major milestone for the company, as monetizing the resource allowed the company to turn its attention to other areas as well as end its presence in Bolivia as a consequence of a hardening government attitude towards mining activites.