Mirasol Resources Ltd. (TSX-V: MRZ) (OTCPK: MRZLF) (the “Company” or “Mirasol”) announces the signing of the definitive option agreement for its Nord Project (the “Project”) in northern Chile with Encantada SpA (“Encantada”), an affiliate of Mineria Activa SpA. Mineria Activa is a Chilean, mining-focused, private equity group with over US$150 million in assets under management.
Mirasol’s President and CEO, Norm Pitcher, stated: “We are pleased to close this transaction after the successful completion of the technical and legal due diligence. Mirasol has monetized its interest in a non-core project for up to US$ 3 million cash payments and the creation of a new 2% NSR royalty on prospective exploration claims located near a development project.”
Terms of the Nord Agreement
Encantada has the option to earn 100% of the Project over 4 years by:
- Making cash payments totaling US$ 3,000,000 according to the following schedule:
- On signing of definitive agreement: US$ 50,000
- 14th month anniversary: US$ 200,000
- 24th month anniversary: US$ 400,000
- 36th month anniversary: US$ 600,000
- 48th month anniversary: US$ 1,750,000
- Incurring at least US$500,000 in exploration expenditures over the first 2 years of the option period.
Upon completion of the option obligations, Encantada will have earned a 100% interest in the Project and Mirasol will retain a 2% Net Smelter Return (“NSR”) royalty. Encantada has the right to buy back 0.5% of the royalty for US$3 million, exercisable within 8 years.
Nord Project Overview
The 1,967 ha Nord Project is located in Region III of Chile within the Exploradora District, which lies on the western side of the N-S trending, regional scale Domeyko fault zone, and within the Eocene-Oligocene Copper Porphyry belt. The Project lies adjacent to the Exploradora porphyry project held by Codelco and the Ciclon-Exploradora polymetallic-epithermal project operated by Mineria Activa. Based on the initial work completed by Mirasol, the Nord Project has the potential to host both polymetallic intermediate epithermal vein and porphyry styles of mineralization (See October 31, 2019 News Release).
At Ciclon-Exploradora, Mineria Activa is advancing toward production after successfully completed a conceptual engineering study and resource estimate in 2019, and is now working on a definitive feasibility study.
At the Nord Project, Encantada intends to complete an initial 6-month fieldwork program, which will include geology and alteration mapping as well as geophysical surveys and trenching. The program is aimed at defining the structural corridors and intersections that may host epithermal deposits and potentially related porphyry style targets. If results are positive, an initial scout drill program will be completed to test the best targets, expected to occur in the second quarter of 2021.
About Mirasol Resources Ltd
Mirasol is a premier project generation company that is focused on the discovery and development of profitable precious metal and copper deposits, operating via a hybrid joint venture and self-funded drilling business model. Strategic joint ventures with precious metal producers have enabled Mirasol to maintain a tight share structure while advancing its priority projects that are focused in high-potential regions in Chile and Argentina. Mirasol employs an integrated generative and on-ground exploration approach, combining leading-edge technologies and experienced exploration geoscientists to maximize the potential for discovery. Mirasol is in a strong financial position and has a significant portfolio of exploration projects located within the Tertiary Age Mineral belts of Chile and the Jurassic age gold and silver district of Santa Cruz Province Argentina.