Hochschild Mining has signed a definitive joint venture agreement with International Minerals Corporation (IMZ) to develop the Peru-based Inmaculada project.

Inmaculada is a 200 million-square metre gold-silver project located 25km south of the Pallancata silver mine, Southern Peru.

Under the agreement, Hochschild will make a cash payment of $15m to IMZ and will fund 100% of the first $100m of capital expenditure towards the project’s feasibility and development.

Hochschild Mining CEO Ignacio Bustamante said the agreement demonstrates its strategy of securing early stage, high-value accretive projects which have significant upside potential and a clear path to control.

Hochschild Mining is the operator of the project, holding a 60% interest.