Palamina to buy Aurania’s Peru unit to boost copper assets

Canada’s Palamina Corp. (TSX-V: PA)(OTCQB: PLMNF) is buying Aurania Resources’ (TSX-V: ARU) subsidiary in Peru, Sociedad Minera, which will grant it access to strategic copper and silver projects in the country, including the Vicus Pluma copper project.

Palamina is a gold explorer with several projects in the Puno Orogenic Gold Belt in south-eastern Peru.

The Toronto-based gold explorer will hand fellow Canadian company Aurania 350,000 common shares and a 1% net smelter return (NSR) royalty. Palamina said it has the option to buy back half of the NSR for C$1 million ($730,000).

The acquisition of Vicus would give Palamina 100% ownership of the Pluma sediment-hosted copper-silver project, which covers 9,800 hectares north and it is contiguous to Hannan Metals’s San Martin copper-silver project, the company said.

“Securing the Pluma copper-silver project will provide Palamina shareholders exposure to the San Martin district where a third drill discovery program is planned by Hannan seeking to confirm a new world-class copper-silver district in Peru,” president Andrew Thomson said in the statement.

Aurania focuses on precious metals and copper in South America. Its flagship asset, The Lost Cities – Cutucu project, is located in the Jurassic Metallogenic Belt in the eastern foothills of the Andes Mountains in southeastern Ecuador.