JOHANNESBURG (miningweekly.com) – Canadian exploration company Revelo Resources has agreed to an extension to the letter of intent for the acquisition of four properties from diversified mining royalty company Altius Minerals's 49%-owned Chilean subsidiary BLC SpA.
TSX-listed Revelo also received approval to privately place five-million of its units with BLC at C$0.15 a unit for C$750 000. The company anticipated that the final closing of all requirements for the acquisition would take place no later than July 10.
As part of the acquisition, Revelo would issue BLC 2.77-million common shares valued at C$250 000, as well as 500 000 common shares on the completion of the first feasibility study on any one of the properties.
It would also grant BLC a royalty of 2% of net smelter returns (NSR) from commercial production of precious metals and 1% of NSR from commercial production of base metals from each of the properties.
Revelo would have the right to buy one-half of the royalties in respect of each of the properties for C$5-million, which would be exercisable for five years following the start of commercial production of mineral products from each of the four properties.
The 60 000 ha properties were all relatively early stage exploration projects, comprising the 3 700 ha Loro en el Hombro – a property prospective for low-sulphidation, epithermal gold-silver veins 25 km south of Yamana Gold's highly productive El Peñon gold-silver mine, and directly east of Revelo's Las Pampas property, currently optioned to a subsidiary of Kinross Gold.
Basic geochemical sampling had been completed on Loro en el Hombro and Revelo was planning detailed geological mapping as well as soil and rock geochemical surveys.
The 34 000 ha Morsas property was located along the iron oxide copper-gold belt about 50 km south-west of Lundin Mining's Candelaria copper-gold mine.
Basic geochemical sampling had been completed on the property and Revelo was currently planning detailed geological mapping, rock geochemical surveys and the interpretation of available geophysical data, with a focus on magnetics data.
Meanwhile, the 17 400 ha Culebra and 3 600 ha Anaconda augmented Revelo's already considerable land position along the Eocene-Oligocene porphyry copper belt, and would be added to the company’s existing Block 3 and Block 4, respectively.
These properties lay along the prospective belt, between the giant La Escondida and El Salvador copper mines. Revelo was planning to consolidate and reinterpret the available databases, which included data from more than 6 500 m of historic drilling on Block 3.