Palamina sells two projects in Peru to Helio Resource

Rock sample from the Gaban gold project. Photo by Palamina.

Toronto-based Palamina (TSXV: PA) just sold Helio Resource (TSXV: HRC) 100% of the application and mining rights to the Gaban gold and Tinka iron oxide copper-gold projects in Peru.

In a press release, the Canadian miner said in exchange it will receive 10 million common shares of Helio and a 2% net smelter return royalty on each project. 

Palamina will act as the operator of the two projects for the first year

Helio will also have to make an advance royalty payment of C$25,000 to Palamina on the first and second anniversaries of closing of the transaction. These payments will double every two years until such time that Helio has either completed a total of 5,000 metres of drilling or has abandoned the properties. 

The projects are both located in the Puno orogenic gold belt which has seen little systematic exploration or drilling. 

Gaban covers 18,700 hectares made up of titled ground and application rights. It is located close to the town of San Gaban and it was acquired to locate the hard rock source of alluvial gold in the Yanamayo river. 

Tinka, on the other hand, covers 1,800 hectares made up of application rights and is located at less than 2,000 metres elevation, 45 kilometres southeast of Ica, the capital city of the Ica department.

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