TORONTO, Aug. 14, 2017 /CNW/ - Nubian Resources Ltd. (the "Company") (TSX VENTURE: NBR) is pleased to announce that the Company has entered into a binding letter of intent ("LOI") to acquire the 800 hectare Rio Pampas Copper Gold Project located in the Pacobamba Chungui District of the Andahuaylas Province of Peru (the "Project").
Highlights:
- Binding LOI to acquire up to 100% ownership of 800 ha Cu Au project.
- Located 80 km northeast of Andahualas in mining friendly southern Peru.
- Situated on the edge of the Eocene-Miocene aged Andahuaylas to Yauri Porphyry Copper Batholith.
Surface mineralization on the Project shows a strong foot print of sulphide and oxide Cu mineralisation stretching across an area that appears to extend over 800 meters in a northwest direction and over a width of 300 metres. The mineralization is consistent with that of Cu Au Porphyry, Quartz stockwork, mineralized breccias and poly-metallic skarn systems that exhibit low sulphidation epithermal mineralised quartz veins and disseminated sulphides within the surrounding rock.
The Rio Pampas Cu Au porphyry system sits on the northeastern edge of the Eocene-Miocene aged Andahuaylas to Yauri Porphyry Copper Batholith that stretches across southern Peru. This belt of rocks hosts some of Peru's large Cu Au porphyry deposits such as the Southern Peru Copper's Los Chancas Project as well as the operating Tintaya and Las Bambas Copper Mines.
Under the terms of the LOI, Nubian has paid a US$50,000 deposit and has agreed to pay an additional US$50,000 annually from the signing of the definitive agreement for a period of 10 years to the Vendors. Nubian has also agreed to invest US$500,000 in development work in the first 12 months to earn a 51% of the Project. To earn an additional 9%, for a 60% interest, Nubian has agreed to invest an additional US$1 million in the first five years. An additional US$2 million in exploration expenditures plus the payment of US$2 million to the Vendors between the 5th and 10th year anniversary will increase the Company's ownership to 80%. Nubian can achieve 100% ownership of the Project by paying the balance of US$9 million to the Vendors in the final two years of the option agreement. It has been agreed that definitive documentation outlining the terms of the option agreement will be completed within 90 days.
Martin Walter, Chief Executive Officer of Nubian stated, "We are extremely excited with this acquisition securing Nubian an entry into one of South America's most promising Copper Gold districts."
