Canada-based AM Gold will sell a stake in its 35 mineral claims at the Pinaya Gold/Copper Project located in the Caylloma and Lampa Provinces of Peru to Rokmaster Resources.
As part of the agreement, Rokmaster will earn an initial 51% interest in the property by paying $2.9m, incurring an aggregate of $12.1m in exploration work on the property and completing a minimum of 10,000 meters of drilling within four years.
The company also has the option to earn an additional 24% interest in the property by paying AM Gold $1.3m, completing a preliminary economic assessment on the property and incurring no less than $9.7m in expenditures within five years.
John Fiorino, AM Gold CEO, said, "Optioning the Pinaya Project to Rokmaster streamlines our assets and allows us to focus on our Red Mountain Gold Project in the Yukon while allowing the company to benefit in any future success of the Pinaya Project through AM Gold's retained interest."
Rokmaster and AM Gold will form a joint venture after the former has earned either a 51% interest and elected not to earn an additional 24% interest in the property.