Southern Silver Exploration (TSXV:SSV,FWB:SEG) has granted Freeport McMoRan Exploration Corporation the right to earn an indirect 70% interest in the Cerro Las Minitas property in Durango, Mexico.
As quoted in the press release:
Upon acquisition of the initial 51% interest, operations on the Property will be conducted pursuant to a Shareholders’ agreement with each shareholder bearing its proportionate share of further Expenditures on the property subject to the right of Freeport to elect to earn an additional 19% interest in the property and upon acquisition of the additional 19% interest, ongoing operations will be governed by the shareholders’ agreement.
Southern Silver President Lawrence Page said:
Since acquisition of an option to purchase a 100% interest in the property with no royalty burdens we have spent $ 5 million in acquisition costs and exploration and development expenses which has resulted in the definition of a significant silver/polymetalic resource and a new copper/gold discovery. Several zones of interest, indicated by geophysics, including possible targets buried under gravels, have yet to be tested, adding to the appeal of the project.