Compañía de Minas Buenaventura S.A.A , a Peruvian company, and Alturas Minerals have signed a four-year option agreement relating to Alturas’ Ccaccapaqui gold-silver property located in southern Peru.
As per the contract, Buenaventura will provide annual cash payments of US$4.0 million to Alturas, and will incur at least US$0.5 million on annual exploration cost. Through this approach, Buenaventura can gain a 100% interest in the project.
Alturas has received an initial payment of US$100,000 on 27 January, 2012 upon signing the Public Deed of the option contract. In addition, the contract specifies that Alturas will receive a royalty payment on all the minerals excavated from the property, once Buenaventura exercises its option to purchase the property. The payment will be equal to 1% of the net smelting return received for the initial 250,000 oz of gold equivalent, and will raise to a 2% net smelting return for extra ounces of gold equivalent.
Alturas’ President and CEO, Miguel Cardozo stated that the company is happy to be associated with Buenaventura, which is known as one of the chief gold and silver producers in Peru and also as a leading international mining house. The contract is part of Alturas' plan to share exploration risk of its copper-gold and gold projects and at the same time focus on the resources available in its copper-gold property, Chapi Chapi-Utupara.
Source: http://www.alturasminerals.com