Auryn Resources has acquired the rights to the Tacora and Andamarca properties that lie next to its Huilacollo gold epithermal project in the Tacna province of southern Peru.
Auryn will increase its existing land position by an additional 1,100ha via the acquisition.
The expansion is also expected to enhance the project's mineralised footprint, which currently consists of 3,100ha within the Pliocene Au / Ag epithermal belt.
Auryn Resources CEO Shawn Wallace said: “The acquisition of the Tacora and Andamarca licences adjacent to our Huilacollo project provides Auryn with both new exploration opportunities and room for future infrastructure requirements as we work towards drilling this fall.”
“Taking into account the additional licences that we have under application, Auryn will control over 27,000ha in this very prospective belt.”
The company noted that obtaining the rights to the properties forms a significant step towards its goal of pursuing oxide gold discoveries in the region.
Auryn also indicated that the Tacora licences comprise a sulphidation epithermal alteration system, spanning a total area of 1.5km by 500m.
The company acquired the Tacora and Andamarca concessions as part of two separate transactions with undisclosed Peruvian owners.
Auryn will be required to pay $200,000 upon the signing of a public deed in exchange for the rights of the Tacora concessions, transferring the property in favour of Corisur Peru SAC.
In addition, the company will pay a net smelter royalty (NSR) of 0.5%. Auryn will be eligable to repurchase half of this amount for $0.5m.
The company will also be required to pay $450,000 upon the signing of the public deed, transferring the concession to Corisur in accordance with the Andamarca acquisition agreement.
The Andamarca concession carries with it a 1.5% NSR, with the company having an option to buy back 50% of the amount for a sum of $2.5m.
Auryn’s application for an additional 19,000ha of mineral licences within the Pliocene Au / Ag epithermal belt on alteration systems is currently awaiting approval, which is set to be granted in the fourth quarter of this year.