Canada’s Revelo Resources (TSXV: RVL) and Britain’s BMR Group signed a letter of intent (LOI) that will allow BMR to acquire an 80% interest in Revelo’s Montezuma copper project in northern Chile.
Under the terms of the LOI, Revelo will be issued with new shares for a 19.9% equity interest in BMR, will have a 20% free-carried interest at the project level until completion of a preliminary economic assessment, and will operate a $2.5-million exploration program on behalf of BMR.
“BMR is focused on developing an international copper business, and the LOI at Montezuma is its first significant step along this path,” Tim Beale, Revelo’s CEO and president, said in a media statement. “Revelo and BMR will cooperate closely on all aspects of the transaction, not least the technical aspects of the exploration programs to be developed.”
Montezuma is located between the giant Chuquicamata and Centinela porphyry copper mining districts.
According to Revelo, previous exploration on the project has defined a series of highly attractive porphyry copper targets within the 16,000-hectare property. A large, post-mineral covered, gravel-filled “pampa” covering approximately 14,000 hectares, on the eastern side of the property and called Arrieros, will be retained by Revelo.