Calibre Mining Signs Option Agreement With Centerra Gold For La Luz Project

Calibre Mining (TSXV:CXB) has signed an option agreement for the La Luz gold-silver project in Nicaragua with Centerra Gold (TSX:GG). Centerra can earn up to a 70 percent interest in the project.
The La Luz project is located within Calibre’s Borosi Concessions in northeastern Nicaragua, and consists of 1200 hectares. It includes includes the past producing La Luz gold-silver mine as well as the Cerro Aeropuerto Projec, which currently hosts an inferred gold-silver resource.
Under the terms of the deal, Centerra can earn a 51 percent interest in the project by spending $3 million on exploration at the property by December 31 2017, including a commitment to commence a drill program this year. The company can then elect to earn a further 19 percent interest by investing another $4 million in the project over the subsequent two years.
“Calibre is extremely pleased to have Centerra, a mid-tier gold producer, as our partner on the La Luz Gold-Silver Project,” said Calibre president and CEO, Greg Smith, in a statement. “This agreement with Centerra continues Calibre’s strategy of partnering with high quality, well-funded, gold producers on strategic land areas while allowing the Company to focus on its 100% owned exploration concessions.”
Currently, Calibre is also partnered with IAMGOLD (TSX:IMG) for its Eastern Borosi project, and has a joint venture with B2Gold (TSX:BTO) for its Primavera and Minnesota projects.
Shares of Calibre were up as much as 10 percent on the news on Wednesday morning, with 209,300 shares trading hands, just under five times the average daily trading volume for the company.
Calibre’s share price was up 5.26 percent to $0.10 as of 10:26 a.m. EST.