Revelo Resources to acquire four properties from BLC

21 April 2015 (Last Updated April 21st, 2015 18:30)

Revelo Resources has agreed to acquire four properties from Altius Minerals' Chilean subsidiary BLC.

Revelo Resources has agreed to acquire four properties from Altius Minerals' Chilean subsidiary BLC.

The four properties in Northern Chile totalling more than 56,000ha are relatively early-stage exploration projects.

Located 25km south of Yamana Gold's El Peñon gold-silver mine, Loro en el Hombro is a property prospective for gold-silver veins, while Morsas is a large property located along the IOCG belt about 50km south-west of Lundin Mining's Candelaria copper-gold mine.

The Culebra and Anaconda properties augment Revelo's already considerable land position along the Eocene-Oligocene porphyry copper belt, and are located 60km south of BHP Billiton's Escondida mine along the Domeyko fault system near Revelo's Block 3 and Block 4, respectively.

"Revelo…has emerged as a premier project generator in Chile and as a consolidator of the sector in this top global mining jurisdiction."

As part of the acquisition, Revelo will grant BLC a royalty of 2% and 1% of net smelter returns from commercial production of precious metals and base metals respectively from each of the properties.

Following the start of commercial mineral production from each of the properties, Revelo will have the right to purchase one-half of the royalties of each of the properties for C$5m over a period of five years.

Altius president and CEO Brian Dalton said: "Altius, through a 49%-owned subsidiary, has been assembling exploration projects and assessing investment opportunities in Chile for the past several years.

"We are excited to begin this complimentary project generation and royalty creation focused business relationship with Revelo, which has emerged as a premier project generator in Chile and as a consolidator of the sector in this top global mining jurisdiction."

The acquisition is subject to delivery by BLC of all of the information regarding the properties and approval from Revelo's board of directors.

The proceeds from the placement will be used to fund Revelo's exploration of the properties.