Condor Resources is pleased to announce that it has signed a binding letter of intent (the "LOI") with Mariana Resources for Condor's 102 sq km Condor de Oro project located in the Cordillera del Condor in northern Peru, approximately 130 km southwest of Kinross's Fruta del Norte project.
Under the terms of the LOI, the Condor de Oro project has been divided into two blocks covering the Pucayacu target (Area 1), and the Yuracyacu target (Area 2). The two target areas are located approximately 8 km apart. The LOI gives Mariana the option to earn a 51% interest in Areas 1 and 2 of the Company's Condor de Oro project upon total cash payments of $US5 million and exploration expenditures totalling $US25 million over a four year period.
At Pucayacu (Area 1), Mariana has an exclusive option to earn a 51% interest in the 34 sq km block. In order to exercise this option, Mariana must make cash payments to Condor totalling US$2.5 million and complete exploration expenditures of US$12.5 million within four years. The LOI stipulates a mandatory work program of 1,500m of diamond drilling in year one at Pucayacu. A non-refundable US$50,000 payment was made upon signing of the LOI.
The Yuracyacu target lies northeast of Pucayacu within the remaining 68 sq km of the Condor de Oro concessions (Area 2). By a payment of US$50,000 within 15 days of signing the LOI, Mariana will acquire a 90 day exclusivity period with respect to Area 2. Providing Mariana is satisfied with the results of their due diligence (which includes a mandatory geochemical sampling program), and by payment of US$50,000 at the conclusion of the 90 days, Mariana will have an exclusive option to earn a 51% interest in the Area 2 concessions. The terms of the Area 2 option are similar to the Area 1 option, with a 51% interest earned after cash payments of $US2.5 million and exploration expenditures of $US12.5 million over a four year period.
Condor and Mariana are currently working on a definitive option and joint venture agreement (the "Definitive Agreement") which will incorporate the principal terms of the LOI in a more detailed nature.
Patrick J. Burns, President and CEO of Condor, stated that, "I am delighted to have Mariana Resources as a partner on our Condor de Oro project, because they are of the same opinion as we are - that the Pucayacu and Yuracyacu targets are among the most significant untested bulk tonnage porphyry gold-copper targets currently known within the Cordillera del Condor of northern Peru."
Ray Angus, COO of Mariana, said, "This is an opportunity for Mariana to drill untested potential company-maker gold and base metal targets in this highly prospective belt in conjunction with our current on-going exploration programme in Argentina."
Condor Resources Inc. was incorporated in 2003 by field exploration specialists focused on the generation of precious and base metals projects in South America, where management has extensive experience and a proven track record of discovery. The Company's long term objective is the discovery of a major new precious/base metals deposit and its business plan offers shareholders access to an exciting portfolio of fifteen properties in Peru and Chile, each offering a unique path to discovery.
Source: http://www.condorresources.com