June 2016: Arena Minerals (TSXV: AN) has opened negotiations with Rouge Resources (TSXV: ROU) to sell its Pampa El Peñón Au project in Region II.
AN plans to transfer its stake, held through two option agreements with SQM (NYSE: SQM), to ROU in exchange for 8.6M ROU shares and the payment of US$750,000 in cash and a commitment to spend US$1.8M on the project, reflecting ANs outstanding commitments under the options.
“We are very pleased to enter into this transaction with ROU. The disposition of ANs interest in Pampas el Peñon is consistent with Arena’s prospector generator model of leveraging partners’ capital to advance projects while still generating economic benefit for Arena shareholders,” said AN CEO William Randall.
The LoI between AN and ROU is subject to ROU raising at least US$2.5 through a private placement.
Pampas El Peñón covers 3,400h over 13 claims and lies N and W of Yamana Gold’s (TSX: YRI) Pampa Augusta Victoria mine that forms part of the El Peñón mine complex (2015 production: 227,000oz Au, 7.7Moz Ag).
To date, AN and SQM have invested more than US$1M in mapping, sampling, trenching and limited near-surface drilling designed to define the location of epithermal Au-Ag veins.