Canada-based Arena Minerals has signed an agreement to acquire 100% of the La Finca Property in Region III of Chile.
La Finca is an undrilled Cu-Mo porphyry target, 15km north-east of the village of Inca De Oro and 35km SE of Diego de Almagro.
Arena president and CEO Will Randall said: “La Finca fits our criteria in which we aim to select high-quality copper porphyry properties at low elevations with a relative infrastructure advantage.
“La Finca’s average elevation is approximately 2,000m 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% 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.”
According to the company, the prospect lies near a pronounced NE trending regional lineament that controls the emplacement of the mineralisation in the area.
The main alteration comprises extensively oxidised and leached quartz monzodiorite, relatively unaltered tourmaline breccias and lesser altered diorite porphyry.
Arena has an option to gain 100% working interest in the La Finca project by infusing cash payments of $50,000 on signing (completed), $50,000 one year after signing, $70,000 two years from the date of signing, $130,000 three years from signing, and $900,000 four years from signing.
The project is subject to 2% NSR to be paid to the vendor. However, Arena can exercise the option of repurchase 50% of the NSR for $3m.
Arena has issued 200,000 stock options to its consultant.