Canadian exploration company GoldMining has signed an agreement to acquire a 100% interest in Lupaka Gold’s Crucero gold project in south-east Peru.
Under the deal that marks the company’s first acquisition in the country, GoldMining is required to offer 3,500,000 common shares and $750,000 to Lupaka Gold.
Located 150km north-east of Juliaca city in the Puno region, the project comprises three mining and five exploration concessions covering a total area of 4,600ha.
The mining concessions carry a 30-year assignment valid until 2038.
GoldMining chairman Amir Adnani said: "We are pleased to announce another milestone acquisition in furtherance of our long-term growth and value-building strategy.
"With this acquisition, we continue to realise our vision of consolidating multi-million ounce gold assets and maximising gold leverage for our shareholders."
The project has indicated resource of one million ounces grading 1.01g/t gold and an inferred resource of 1.03 million ounces grading 1.03g/t gold at a 0.4g/t cut-off.
To date, Lupaka Gold identified ten additional geophysical and geochemical targets on the project.
GoldMining CEO Garnet Dawson said: "With this acquisition, we will be acquiring not only a project in a favourable mining jurisdiction with a historic pit-constrained resource, but also one that has had significant historical investment and exploration, including 23,000m of drilling over 72 holes, and numerous targets identified for future exploration.
"Upon completion, we plan to commission a current resource estimate for the project as well as identify opportunities for follow-up exploration and expansion."
The transaction is scheduled to complete by the month-end and is subject to customary closing conditions, including receipt of requisite third-party and regulatory consents and approvals.