Mirasol and Newcrest Sign Binding Agreement
April 2018: Mirasol Resources Ltd. (TSVX: MRZ; OTCPK:MRZLF) and Newcrest Mining Limited (ASX:NCM) have signed a binding agreement for joint venture on the Zeus project, an 18,480 ha High-Sulfidation Epithermal (HSE) gold project in Northern Chile.
The agreement gives NCM the right to own up 80% of the Zeus projects under the conditions that they complete exploration targets and development milestones, with providing staged payments of US$1M to MRZ. It is the second farm-in agreement between the two companies in the last six months, following the Altazor agreement. Stephen Nano, CEO of Mirasol, has stated plans to advance a large-scope surface geological exploration and geophysical program over the next 3 months, with a planned drilled campaign scheduled in October/November.
The terms of the binding agreement stipulate an option phase wherein NCM must supply US$100,000 cash payment upon signing the agreement and agree to commit a minimum of US$1.5M in the first 18-month exploration program. MRZ will operate the project during this phase and receive a 10% management fee while NCM will have the right to exercise the farm-in phase of the agreement at the end of the first year.
The farm in phase specifies four stages wherein NCM pays MRZ amounts of: US$400,000 (stage 1) with have the right to earn 51% of the project over an additional 4-year period (total 5 years) by spending an additional US$8M; US$500,000 (in stage 2) and with the right to earn 75% of the project over an additional 2-year period (total 9.5 years) by funding the delivery of a positive preliminary economic assessment, in accordance with NI 43-101 on a resource of not less than 1Moz Au @ 0.30g/t. NCM additionally agrees to fund the lesser of either: (i) additional expenditures after the completion of Stage 2 of US$100M; or (ii) the delivery of a positive bankable Feasibility Study, in accordance with NI 43-101 in Stage 3 for the right of 75%. In Stage 4, MRZ has the option to contribute its proportionate share (25%) of further development expenditures or require NCM to finance MRZ´s share of the development costs, exchanging an additional 5% interest in the project. NSM may elect to extend each of Stage 2 and Stage 3 by making additional payments to MRZ.