La Quinta enters LOI to acquire BC massive sulfide project with 171 g/t silver, 6.7% copper
La Quinta Resources Corporation (TSX VENTURE:LAQ) (“La Quinta”) is pleased to announce that it has entered into a Letter of Intent (LOI) to acquire the Carruthers Pass, B.C. massive sulfide project from Cariboo Rose Resources Ltd. (TSX VENTURE:CRB) (“Cariboo Rose”).
Under the terms of the LOI, the Company can acquire 90% of the project from Cariboo Rose over a six (6) year term by spending $2 million in work commitments on the project, and making payments of $470,000 cash and issuing 2 million shares of the Company’s common stock to Cariboo Rose. The Company further has opportunity to acquire the remaining 10% interest from Cariboo Rose at fair market value. The project is subject to a 2.5% royalty, which may be reduced to 1% royalty by purchase from the underlier, Phelps Dodge Corporation of Canada, Limited for $1.5 million. The finalization of the above transaction is subject to receipt of requisite regulatory approval, including without limitation, the approval of the TSX Venture Exchange.
According to a NI43-101 compliant Technical Report dated 2006 and subsequent Summary Report dated 2008, the Carruthers Pass massive sulfide is a volcanogenic massive sulfide located 70 km south of the Kemess copper-gold mine in the Omineca Mining Division. The project consists of 8 claims with 130 units, covering 3,250 hectares more or less.
Read the full news release here.