Diversified miner Anglo American has signed a formal earn-in and joint venture (JV) agreement with Vancouver-based Luminex Resources, relating to Pegasus A, Pegasus B and Luz concessions in Ecuador.
The agreement gives Anglo the right to earn a 60% ownership interest in a JV company indirectly holding the properties if it invests $50-million and makes $7.3-million of cash payments over a seven-year period.
Anglo will have the right to earn an additional 10% ownership interest in the JV by sole funding all the required work up to a decision to construct a mine at the properties, taking its aggregate ownership to 70%.
The partnership was first announced in March, when the companies entered into a non-binding letter of intent.
Luminex said that preparations were under way to continue exploration activities on the properties with Anglo American acting as manager and operator. Subject to permitting, Anglo American plans on flying an airborne magnetic ZTEM survey over the concessions during the first year of the agreement.