Aston Bay Enters Earn-In with Antofagasta

Further to a memorandum of understanding signed earlier this year, Aston Bay Holdings (TSXV:BAY) has entered a definitive earn-in agreement with Antofagasta plc. Under the terms of the agreement, Antofagasta may earn up to a 70 percent interest in the Aston Bay Properties.

As quoted in the press release:

The basic terms of the Definitive Agreement are as follows:

• In Phase I, Antofagasta may earn a 50.1% interest in the Aston Bay Properties by spending a minimum of US$10 million over a period of six years, which commenced June 23, 2014.
• Phase II provides that Antofagasta may earn an additional 19.9% interest in the Aston Bay Properties by spending an additional US$6 million over three years and by providing a National Instrument 43-101-compliant technical report demonstrating an Indicated Resource.
• Phase III will immediately follow Phase II and provides that Antofagasta will fund all expenditures, including a minimum of US$1 million per year, until two years have elapsed following the completion of a possible Feasibility Study.
• Phase IV will commence two years after the delivery of a possible Feasibility Study, and both Aston Bay and Antofagasta will pay their pro rata shares of expenditures, according to their respective interests in the Aston Bay Properties.

Aston Bay president and CEO, Benjamin Cox, said:

The execution of this agreement represents another significant milestone in Aston Bay’s short history. The Company was purpose-built three years ago to acquire the Aston Bay Properties. In the intervening time we have consolidated all of the historic data on the project and demonstrated that copper mineralization occurs over a larger area than first identified. Today, Aston Bay has entered into an agreement with Antofagasta, a world leader in the exploration and development of copper projects, to sole-fund the evaluation of the properties in exchange for earning a majority interest.

Click here to read the full Aston Bay Holdings (TSXV:BAY) press release.