PERTH (miningweekly.com) – Metals explorer Avalon Minerals has signed a letter of agreement with TSX-V-listed Cornerstone Capital Resources over the Bramaderos project, in Ecuador.
Avalon will earn an initial 51% interest in the mineral rights at the Bramaderos concession by paying $50 000 to Cornerstone subsidiary La Plata Minerales (Plamin) on the execution of a binding agreement, and by spending $1.5-million on exploration within the first year of the agreement, or $1.9-million before the third year of the agreement.
After the first earn-in, Avalon will have a further 90 days in which to elect to earn an additional 19% interest in the property by funding the completion of a feasibility study, and paying the greater of $250 000 or $1/oz of gold equivalent classified as measured and indicated resource, within the feasibility study.
On the second earn-in, Avalon will have the right to acquire an additional 10% in the project area by either providing the full costs to achieve commercial production, or arranging project financing to bring the project into commercial production.
The Bramaderos project covers some 4 949 ha of land in the Loja province, and the project was subject to sporadic exploration between 1970 to 1984, between 2001 and 2002, and between 2004 and 2007.
Edited by: Creamer Media Reporter
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