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Indico Resources: Offer to Purchase Irmin Copper Project
May. 20, 2016 09:07AM PST
Base Metals Investing Indico Resources (TSXV:IDI) has entered a letter of intent to sell its Irmin copper project to Arutani S.A.C.. As quoted in the press release: Aruntani will acquire all rights held by Indico Peru to Inversiones Minerales S.A.C., which holds 23 concessions covering 123 km2, located on the northwest extension of the Southern Peru Porphyry Copper …
Indico Resources (TSXV:IDI) has entered a letter of intent to sell its Irmin copper project to Arutani S.A.C..
As quoted in the press release:
Aruntani will acquire all rights held by Indico Peru to Inversiones Minerales S.A.C., which holds 23 concessions covering 123 km2, located on the northwest extension of the Southern Peru Porphyry Copper Belt (the “Irmin Property“). At present, the Company and Aruntani have an agreement to jointly develop the Irmin Property (the “Joint Venture Agreement“), with Aruntani holding an earn-in option allowing it to earn 70% interest in the Irmin Property after completion of expenditures totaling US$18,600,000. As part of the Transaction, Aruntani will acquire the Company’s legal and beneficial right, title and interest in and to the Ocana Property, including any interests held pursuant to the Joint Venture Agreement. As consideration for the acquisition of all shares of Indico Peru, Aruntani will pay to the Company US$6,000,000 in cash and will grant the Company a 1% Net Smelter Return royalty over the Irmin Property.
Aruntani is the holder of approximately 27.21% of common shares in the capital of the Company, and is considered a “control person” as such term is defined by applicable securities laws. Accordingly, the Transaction will be a related party transaction pursuant to the provisions of Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions.