Valor Resources inks earn-in agreement with Barrick Gold at the Charaque project in Peru
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An agreement between Valor Resources and Barrick Gold has secured the involvement of a sector-leading gold and copper producer to advance and fund exploration at Valor’s 60km2 Charaque project.
After acquiring the Charaque project 12 months ago Valor Resources (ASX:VAL) has inked a deal with a sector-leading producer to fast-track exploration in an area where a number of major mining companies including Barrick, Teck (NYSE: TECK) and Fresnillo (LSE: FRES) all have significant landholdings.
Highlighting Valor’s focus on uranium, the agreement is line with the company’s overarching strategy to extract value from its diversified portfolio, including options to divest its Peruvian copper project through divestment or transaction.
Under the agreement, Barrick Gold (NYSE:GOLD) has been granted a five-year option to acquire a 70% interest in the property for cash payments totalling US$800,000 and US$3m of exploration expenditure.
During the first two years, Barrick guarantees a minimum exploration expenditure of US$500,000 and once it has acquired a 70% interest, the Toronto-headquartered company can earn an additional 10% by exercising a second option with a US$1 million cash payment.
This will include the delivery of a sole-funded pre-feasibility study, taking its interest to 80%.
“This is a very exciting outcome for Valor,” VAL executive chairman George Bauk says.
“Barrick already holds land in the area, including tenements immediately adjacent to Charaque, and we look forward to them bringing their significant expertise to lead the exploration program while Valor retains strong, free-carried exposure to any discoveries.”
Bauk explains Barrick’s involvement in the ongoing exploration of the Charaque project will enable Valor to focus efforts on advancing exploration at the Picha copper project where drilling is set to kick off in the September quarter.
“This part of Peru has become a very active exploration hotspot, with several major deposits including the San Gabriel and Berenguela polymetallic deposits,” he adds.
“The 7.6-million-ounce gold equivalent San Gabriel gold-copper project – which lies just 7 kilometres south-east of Picha within the same mineralised corridor – is currently under development, with first production targeted for 2025.”
This article was developed in collaboration with Valor Resources, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.