Peruvian Metals (TSXV: PER) announced that it has entered into agreements with a group of Peruvian private investors for the purchase the Mansa Musa gold-silver property, located in the southwestern department of Huancavelica.
In a press release, the Canadian miner said that the Peruvian investors are supported by GEXEG S.A.C, a private mining consulting company based in Lima.
According to the brief, payments to Peruvian Metals totalling $940,000 will be made over seven years with up to 3% NSR payable to the company on all metal production. On two main concessions, of a total of five, the 3% NSR will be payable solely to Peruvian Metals and on the three surrounding concessions, 2% will be paid to Franco-Nevada and 1% to Peruvian Metals.
The five concessions that comprise the Mansa Musa project extend for 3600 hectares and, according to Peruvian Metals, are underlain by Tertiary age volcanic rocks with high sulphidation style mineralization similar to Barrick’s Pierina and Alto Chicama mines and Newmont and Buenaventura’s Yanacocha mine in Peru.
“We are very pleased to have GEXEG involved in the development of our Mansa Musa gold-silver project in southern Peru. They have the in-house expertise to plan and execute a mine plan which will be beneficial to Peruvian Metals,” the miner’s CEO and chairman, Jeffrey Reeder, said in the brief. “Having retained a significant NSR on the property will allow our company to focus on its high-grade projects in northern Peru and the Huachocolpa area while generating a substantial new revenue stream.”