As per the terms of the option agreement, Meryllion has the right to acquire a 100% interest in the property by making an initial payment of $50000 with additional escalating option payments amounting to $1000000 over the next five years.
The property comprises mineral concessions amounting to 3 000 hectares situated 4200m above sea level.
The focus of the project is the La Providencia silver deposit, which was discovered in 1969 and which between 1986 and 1997 produced some five million ounces of silver from ore grading between 400 g/t and 500 g/t Ag.
The deposit is hosted by Plio-Pleistocene, poorly consolidated, continental sediments, consisting of sandstones and conglomerates preserved in an 18km-long pull-apart basin within a basement of Ordovician clastic sediments.
This basin hosts a number of occurrences that have previously been interpreted as redbed-type copper (silver) mineralization.
The property is subject to an NSR of 1.5% with Meryllion having the option to buy out the royalty.
