Minera and Collingwood Peru Sign Joint Venture for Veca Project

8 September 2009 (Last Updated September 8th, 2009 18:30)

Precious metals miner Minera and Collingwood Peru have signed a letter of intent (LOI) to establish a joint venture to explore the Veca exploration lease located in north central Peru. Under the terms of the LOI, Minera will initially manage and hold 60% of the joint venture with Collin

Precious metals miner Minera and Collingwood Peru have signed a letter of intent (LOI) to establish a joint venture to explore the Veca exploration lease located in north central Peru.

Under the terms of the LOI, Minera will initially manage and hold 60% of the joint venture with Collingwood holding the remaining 40%.

Minera will make an initial payment of $100,000 and any gold found that can be transformed into minable reserves will involve a $10 an ounce payment to Collingwood.

Minera's executive chairman Courtney Chamberlain said the Veca exploration lease represents a high-quality exploration project in one of Peru’s premier gold districts.

"La Libertad is a prolific gold producing district hosting many well known gold deposits such as Lagunas Norte, Santa Rosa and San Simon,” Chamberlain said.

"Extensive surface sampling by a previous exploration company has demonstrated good gold grades in association with geological structures and bedded partings, providing potentially open pitable, bulk tonnage drill targets."

By making a $2m payment, Minera will raise its equity in the joint venture to 70%.

In the initial year, Minera must spend at least $200,000 on exploration work and is entitled to cancel the contract without any additional obligations.