Vale to invest $16 million in copper-gold project in Mexico
Brazil’s mining giant Vale (NYSE: VALE) is set to invest up to $16 million in a copper-gold exploration project in Mexico, after reaching a deal with Canadian junior Corex Gold (TSX-V: CGE).
The agreement between Corex and Vale's local subsidiary Vale Exploraciones Mexico, announced late Wednesday, gives the Rio de Janeiro-based company up to a 51% interest in the Santana project through a minimum expenditure of $8 million over an initial three-year period, Corex said in a press release.
"We are very pleased to have a company such as Vale as a strategic partner to further advance the Santana property to its next phase of development, and unlock the project's porphyry potential," said Corex CEO Craig Schneider.
The mining giant will have the option to gain an additional 9% stake by spending $4 million in the 18 months following the initial phase and another 5% through $4 million in a subsequent 18-month final phase.