PriceSensitive

Camino acquires Los Chapitos property

Mining
TSX:COR
02 July 2020 09:02 (EDT)

Camino (TSXV:COR) has completed an option agreement with Minas Andinas SA to acquire a 100 per cent stake in the Los Capitos property.

Under the terms of the deal, which was signed on July 19, 2016, the company issued a total of approximately C$680,000 in cash to Minas Andinas, along with 500,000 common shares.

The final tranche of the agreement was paid on June 30, and consisted of roughy $204,000 in cash and 150,000 common shares.

Minas Andinas will retain a 1.5 per cent net smelter return royalty agreement, payable up to a maximum amount of $13.62 million, and will be adjusted on a yearly basis according to the US Consumer Price Index. Camino has the right of first offer to purchase this net smelter return royalty.

Jay Chmelauskas, President and CEO of Camino, said the Los Chapitos property is a new discovery in Peru’s copper sector that first gained recognition during an initial drilling campaign in 2017.

“Camino has since advanced its systematic exploration at Chapitos with geochemistry mapping, geophysics and permitting, leading us to our next drill campaign planned for September.

“Drilling will be focussed on expansion of known mantos and the discovery of potentially new copper mantos,” he added.

Jay also noted that new copper discoveries are needed to shore up the relationship between depleting mine supply and new demand for copper from an electrifying global economy.

Located in the Peruvian Iron Oxide Copper Gold belt, the Los Chapitos property covers 22,500 hectares and hosts a total of 39 claims.

Under a COVID-19 Surveillance, Prevention and Control Plan, Camino intends to begin a program of exploration at the property in July this year.

Camino (COR) is currently steady at 11 cents per share at 11:16am EDT.

Related News