Arena Minerals Inc., is pleased to announce it has entered into an agreement to acquire 100% of the La Finca Property, an undrilled Cu-Mo porphyry target located in Region III of Chile approximately fifteen kilometers north-east of the village of Inca De Oro and thirty-five kilometers SE of the town of Diego de Almagro.
“Acquiring La Finca adds a strong target to our portfolio. La Finca fits our criteria in which we aim to select high quality copper porphyry properties at low elevations with a relative infrastructure advantage ” stated Will Randall, President and CEO of Arena. He added, “La Finca’s average elevation is approximately 2,000 metres above sea level, with year-round access, and near several advanced projects dominated by El Salvador mine, operated by state owned Codelco. Having the option to earn into 100 percent of La Finca gives Arena the flexibility to add potential partners down the line. Along with the Sierra Gorda project we are very excited about the prospects of our portfolio.”
The La Finca Property
The prospect lies near a pronounced NE trending regional lineament that controls the emplacement of the mineralization in the area. Access to the area is excellent via well travelled and maintained public paved and gravel roads to within five kilometers of the claims. There are several other known porphyry and tourmaline breccias hosted systems along the trend, which continues to the NE until Codelco’s El Salvador mine located some fifty kilometers from La Finca. At the property scale, there are numerous mineralized structures radiating from the main alteration zone that cover an area of approximately 2.0km by 2.5km. The structures all contain varying amounts of quartz-copper oxide-molybdenum mineralization with some having been mined by artisanal miners to extensive depth. The central alteration zone which contains the altered porphyry doesn’t outcrop and was discovered with trenching done by the current owners. The main alteration consists of extensively oxidized and leached quartz monzodiorite, relatively unaltered tourmaline breccias and lesser altered diorite porphyry. These rocks are surrounded by propylitized andesitic volcanic (host to the mineralized structures and quartz veins mined by artisanal miners) and lesser rhyolite porphyry.
Section work was done by the owners, which confirms the presence of altered porphyry with secondary biotite and lesser magnetite within the main zone. The main trenches show intensively leached intrusive with moderate to strong stockwork locally. Some sections of the trenches are well mineralized in copper oxide over widths of four to ten meters, hosted in what appear as late cross cutting structures. It is difficult to confirm if some of the mineralization is related to the stock work due to the intense leaching.
Terms of the Agreement
Arena can earn into 100% of the La Finca, project by making cash payments of US$50,000 on signing (completed), US$50,000 one year from signing, US$70,000 two years from signing, US$130,000 three years from signing, and US$900,000 four years from signing. .Arena must also spend a minimum of US $500,000 in work commitments within 15 months of the signing of the Agreement. The Vendor will retains a 2% NSR, with Arena being able to repurchase 50% of the NSR for $3 million.
Arena has issued 200,000 stock options to a consultant of the Company effective May 9, 2017. The stock options vest immediately, are exercisable at $0.20 for a period of five years and remain subject to the receipt of all necessary regulatory approvals, including the approval of the TSX Venture Exchange. The stock options remain subject to a statutory hold period of four months and one day expiring on September 9, 2017.