JOGMEC will have an option to earn up to 60% indirect beneficial interest with the investment of US$8.0 Million.
Panoro Minerals president & CEO Luquman Shaheen said: “Panoro is pleased to complete this agreement with JOGMEC whereby the Company has financed another of its attractive early stage projects. Earlier in 2018, the Company earned a 2% NSR royalty on its Kusiorcco Project by securing an investment commitment by Hudbay.
“These two early stage projects complement the Company’s two advanced stage projects; Cotabambas and Antilla, highlighting Panoro’s unique pipeline of Peru focussed copper exploration and development projects. We look forward to continuing to identify creative financing alternatives to move our significant pipeline of projects through exploration, engineering, permitting and into development.”
The terms of the Option are as follows:
JOGMEC will contribute US$1.0 Million each year for the first three years to earn a 49% interest in the Property.
JOGMEC has an option to earn a further 11% participating interest in the Property; for a total participating interest of 60% by making a further capital contribution to the Property of US$5.0 Million.
Investment in the Property will be on a pro-rata basis after JOGMEC has fulfilled its funding obligation.
If any party’s participating Interest is diluted to less than ten percent its participating interest shall be converted to a two percent Net Smelter Return Royalty interest from the properties.
The other party may purchase one-half of such royalty with a cash payment in an amount of US$2.0 million following the creation of the royalty.
A management committee shall make all strategic decisions and shall oversee exploration activities.
The Company will act as the operator responsible for implementing programs and budgets.
Humamantata Project
The Humamantata Property is located in Southern Peru, together with Panoro’s portfolio of projects in the region including the Antilla and Cotabambas Projects.
The project is located approximately 10 km to the southwest of Hudbay Minerals’ Constancia Copper mine and the Kusiorcco Project. The Kusiorcco Project was sold to Hudbay by Panoro Minerals where the Company received cash payments and a 2% NSR.
The Humamantata Property covers an area of 3,600 hectares. The Company completed exploration in 2014 and 2015, which included:
geologic mapping in 1:10,000 scale, covering an area of 2,000 hectares;
a geochemical survey with the collection 326 surface rock chip samples; and
Airborne K-Th spectral, Analitic Signal and Magnetic field, over an area of 3,600 ha.
The Humamantata Property contains a few different types of mineralization, including:
Cu-Au Skarn/porphyry type mineralization at the northern part of the property, where a porphyry of quartzmonzonite composition is in contact with limestones of the Ferrobamba formation. The copper hypogene mineralization is composed by chalcopyrite and bornite;
Hydrothermal breccias and mantos with Pb-Ag & Zn anomalies in limestones in the central part of the property; and
Extensive silicification/stockwork and advanced argillic alteration with anomalies of Cu, Mo, Au, Ag, into sandstone layers of the Mara formation.
The altered limestones and sandstones are dipping to the contact with the Andahuaylas-Yauri Batholite, striking 9 km in North-South direction.
The Company and JOGMEC are planning an exploration drill program to test the continuity of the mineralized Cu-Au-Mo Porphyry that outcrops in the north part of the property, along the contact and below the supergene alteration of the southern area.
Source: Company Press Release
