Duran Options Panteria Project to First Quantum Minerals Subsidiary

Duran Ventures (TSXV:DRV) has entered an option agreement for its Panteria copper-gold project in Peru with Minera Antares Peru, a subsidiary of First Quantum Minerals (TSX:FM).
As quoted in the press release:

Under the terms of the Agreement, FQM can conduct due diligence studies for up to 18 months before proceeding to earn up to 80% of the Project by delineation of a resource >1 million tonnes of copper equivalent and making a series of staged payments over 5 years. If FQM proceed to a decision to mine they have the option to buy the remaining 20% equity from Duran for US $0.02 per lb of copper equivalent based on 20% of delineated reserves. Duran will retain a 0.5% NSR royalty.
The Agreement outlines an exploration and development schedule divided into 3 stages:
Stage 1: Duran will assign all exploration rights to FQM and FQM will contract Duran’s community relations team in order to obtain community approval as a pre-requisite for the environmental permit (DIA). FQM will have the right to carry out due diligence studies over a period of 18 months subsequent to receiving the aforementioned community approval.
Stage 2: FQM may earn an 80% interest in the Project by defining a mineral resource, and reporting the resource in compliance with National Instrument 43-101, in excess of 1 million tonnes of copper equivalent within 5 years and making a series of escalating payments with a maximum cumulative total of US $500,000 (First Option).
Stage 3: FQM will be granted a Second Option to purchase Duran’s remaining 20% interest by carrying out additional technical /feasibility studies and declaring a “decision to mine”. The purchase amount will be calculated by applying a value of 2 cents (US$0.02) per pound of copper equivalent to 20% of reserves. Duran will also be paid an NSR of 0.5% on all metal production from any subsequent mining operation (capped annually at US$15 million) except in the case where FQM elects not to exercise the Second Option and Duran contributes its proportion of project development and construction costs. Duran’s 20% interest will be free-carried through to a decision to mine.

Click here for the full press release.