In the event that the option is exercised, an 80-20 joint venture would be formed.
Auryn Resources (TSX:AUG,NYSEAmerican:AUG) has announced that it has entered into a series of agreements with Corporacion Aceros Arequipa to option three important mineral concessions located within the company’s Sombrero copper-gold project in Southern Peru.
The company said the option takes the form of a mining assignment agreement combined with a framework agreement, trust agreement, shareholders’ agreement and a corporate guarantee. In the event that the option is exercised, an 80 percent (Auyrn) : 20 percent (Aceros) joint venture would be formed combining the 520 hectare Aceros concessions plus 4,600 hectares of Auryn’s 120,000 hectare Sombrero land position. The Aceros concessions are considered important to create a cohesive land position over key target areas as Auryn’s technical team advances the Sombrero Main area towards its initial drill program in 2019.
Executive chairman and director of Auryn, Ivan Bebek said:
We are pleased to welcome Aceros Arequipa’s involvement in our Sombrero Main project. Not only will these concessions help us to further consolidate the district into a comprehensive land package, their knowledge of the project and relationships with the local communities will be great assets as we move forward.
Sombrero is becoming one of the most impressive projects that we are aware of, with several discovery opportunities. The abundance of mineralization sampled on surface, coincident with large chargeability and magnetic targets, as well as the grades of both copper and gold mineralization are remarkable.
We are well underway with the permitting process and are looking forward to a maiden drill program, which we anticipate in Q2 of 2019.”