ASX-listed FMR Resources has entered into a conditional binding term sheet and secured exclusive access to the La Lorena project, which the company describes as a highly prospective and largely unexplored copper/gold district in central Chile.

The company has entered into a conditional binding term sheet with two private individuals granting it a five-year option to buy the concessions hosting the La Martuca and Esperanza prospects.

A signing fee of $50 000 was paid on execution of the term sheet.

Option fees comprise $50 000 for years one and two of the option period and a yearly payment of $60 000 for years three to five.

FMR has the right to exercise the option and acquire 100% legal and beneficial interest in the prospects at any time through the payment of $250 000, together with any outstanding amounts owed under the balance of the option period.

The company can exercise the option agreement with the vendors at its sole discretion within a five-year period.

During this time, it has exclusive exploration rights, but maintains the right to walk away at any time.

The La Lorena project is about 54 km² of tenure located in the highly fertile Eocene-aged magmatic belt, which hosts numerous major porphyry copper deposits, FMR points out.

Previous small-scale mining within the La Lorena project area at the La Martuca, Los Morados and Esperanza prospects has confirmed the presence of copper- and gold-bearing hydrothermal systems.

The first pass underground rock chip sampling completed by FMR returned up to 4.11% copper at La Martuca and 2.42% copper at Los Morados.

Located about 30 km north-east of FMR’s Llahuin project joint venture, the La Lorena project has never been systematically explored or drill tested, the company explains.

Exploration, including geological mapping, surface sampling and geophysical surveys, is under way to fast-track to an initial drilling programme in the fourth quarter of this year.

FMR has also entered into exclusivity agreements with surrounding private concession holders, giving the company the exclusive rights to conduct extensive exploration due diligence on various prospects for a period of six months.