Revelo Resources has announced that it has signed an option agreement with Teck Resources, allowing Teck to acquire up to a 60 percent interest in a 1,500-hectare portion of Revelo’s Cerro Buenos Aires copper property in northern Chile.
Revelo Resources (TSXV: RVL) has announced that it has signed an option agreement with Teck Resources Chile Limitada, a subsidiary of Teck Resources Limited (TSX:TECK.A and TECK.B) allowing Teck to acquire up to a 60 percent interest in a 1,500-hectare portion of Revelo’s Cerro Buenos Aires copper property in northern Chile.
Terms of the agreement include:
- 4-year option to earn a 60 percent interest in the property.
- Cash payments to Revelo totalling US$425,000 over 4 years.
- Exploration expenditures totalling US$4.8 million over 4 years.
- Once the option is exercised by Teck, Revelo has 90 days to decide whether to form a joint-venture company with Teck (with Revelo holding a 40 percent interest) in order to advance the property, or to convert its interest into a 1.5 percent net smelter return royalty. Teck has the right to buy-down the royalty by 0.5 percent by paying Revelo US$2 million, at any time.
As quoted in the press release, president and chief executive officer of Revelo, Tim Beale said:
“We are very pleased to have Teck as a partner on our Cerro Buenos Aires project. This is Revelo’s third currently active JV project in northern Chile, and Teck has indicated that it plans to drill test the porphyry copper target as soon as relevant surface works and permitting have been completed. We are excited to see this program develop.”