Inca Minerals agrees to US$9 million earn-in amount
Inca Minerals (ASX:ICG) has provided an update on its Earn-In Agreement negotiations with South32 in relation to its Greater Riqueza Project.
ICG and South32 are negotiating an EIA under which, inter alia, South32 is to acquire a 60% interest in Riqueza by the end of the first phase of the earn-in acquisition (Phase 1) for a sum between US$8 million – US$10 million.
ICG can now indicate that, subject to agreement on all terms in the EIA:
- South32 will provide Phase 1 funding of US$9 million and,
- The Phase 1 funding of US$9 million is to be provided over a 4 year period on completion of which South32 acquires a 60% interest in Riqueza
Exploration planning and due diligence are advanced between both parties. By mutual agreement the 90-day negotiation period has been extended to 15 March 2019. Execution of the EIA is subject to agreement on all outstanding terms including South32’s satisfaction with the technical, commercial and legal due diligence results.
ICG Managing Director Ross Brown spoke on the update, “Earn-in negotiations are progressing very well, the process between Inca and South32 is collaborative and considered, and reflects the importance of this agreement for Inca in both the near-term and long-term.”
About the Greater Riqueza Project
Riqueza is a zinc-silver-lead-gold-copper focused project located within Peru’s mining belt, the Miocene Porphyry-skarn Mineral Belt and then Chonta Mineral Belt (locally).
The site is highly prospective for porphyry and porphyry-related mineralisation, with exploration to date conducted by ICG uncovering an intrusive-related mineralised system covering a 25 square kilometre area.