Dunnedin Ventures has completed the previously announced-acquisition of the Mohave copper-molybdenum-silver porphyry project in the US state of Arizona from Bluestone Resources.
In March this year, Dunnedin signed a letter of intent to acquire a 100% stake in the 10km² property located in the mineral-producing Basin and Range Province of Arizona through a cash-and-stock transaction.
Limited exploration at the site indicates the presence of a sizeable copper porphyry deposit with silver and molybdenum credits.
The physical features of the site are also similar to Freeport McMoran’s Bagdad copper porphyry mine, situated 33km away from the Mohave project.
The acquisition bolsters Dunnedin’s copper portfolio in North America, as the company already owns Trapper and MPD copper porphyry projects in British Columbia, Canada.
Dunnedin Ventures president and CEO Claudia Tornquist said: “At Mohave, we will benefit from the excellent work done by the previous operator Bluestone from whom we inherited a comprehensive suite of high-quality exploration data.
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“In 2011, Bluestone drilled 11 core holes and reported anomalous mineralisation over significant intervals in all holes.
“The work to date strongly indicates that there is a large system of porphyry style Cu-Mo-Ag mineralisation present at Mohave and we have a number of promising drill targets, which we intend to follow-up on in the fall, after we complete the summer exploration programmes on our Canadian porphyry projects MPD and Trapper.”
The company paid C$50,000 in cash and C$100,000 in Dunnedin shares upon closing. The consideration also includes three subsequent payments of 500,000 Dunnedin shares upon completion of three milestones.
Additionally, it includes a 0.5% net smelter returns royalty on the Mohave claims and on a 2km area of interest around the Mohave claims.