Mirasol Resources Ltd. (TSX-V: MRZ), (OTCPK: MRZLF) is pleased to announce that it has signed a letter of Intent for the Company’s Indra epithermal precious metal project in Chile with Hochschild Mining plc (LON: HOC). The LOI gives HOC the right to acquire, in multiple stages, up to 70% of the Project by completing a series of exploration and development milestones and making staged option payments. Mirasol can elect to contribute its 30% of development expenditures or exercise an option for HOC to finance 100% of the development costs through to production, in this latter scenario, Mirasol would retain a 25% interest in the project and HOC’s interest would be increased to 75%.
HOC is a leading precious metals producer focusing on high grade silver and gold deposits, with over 50 years of experience in the Americas. HOC has four operating mines and has extensive experience developing and operating underground epithermal vein mines.
Stephen Nano, CEO of Mirasol, stated: “We are very pleased to be partnering once again with Hochschild to explore and advance one of our projects. We look forward to concluding the binding agreement and starting an aggressive exploration program at the Project. Indra is an attractive conceptual epithermal gold – silver target located at low altitude in the Paleocene age belt, which allows for year-round work and will complement our seasonal exploration activities in the Mio-Pliocene belt of Chile and in the Santa Cruz region of Argentina.”
Terms of the LOI
The LOI contains other customary terms including extension rights to increase the duration of each stage 1, 2 or 3 for cash payments to Mirasol and 2% NSR dilution royalty, triggered upon dilution of a party’s interest to 10% if the Agreement proceeds beyond 51% earn-in.
The LOI is subject to HOC completing its due diligence review and the parties settling the formal option agreement on or before September 14, 2018. Mirasol has granted an exclusivity period to HOC to complete these conditions.
The Indra Project
The Company’s 100% owned 21,000 ha Indra epithermal precious metal project is located in the Paleocene Age Mineral Belt, 5 km south of the 1.37 Moz1 El Guanaco gold mine in northern Chile.
The Project was staked by Mirasol as an outcome of the Company’s Atacama – Puna Generative program, encompassing what Mirasol interprets may be the upper levels of a large epithermal gold – silver system. The Project is characterized by a large carbonate – silica vein and breccia system with weakly anomalous gold – silver rock chip assays and strongly anomalous epithermal path finder geochemistry. The Indra vein-breccia outcrop shows geological characteristics in common with carbonate-silica veins know to be present overlying the ore zone in the HOC Arcata gold – silver mine in Peru. Mirasol has not identified any evidence of modern exploration at the Project despite its year-round access and its location adjacent to an operating mine. A news release providing a technical summary of the project will be issued in the near future.
About Mirasol Resources Ltd
Mirasol is a premier project generation company that is focused on the discovery and development of profitable precious metal and copper deposits. Mirasol employs an integrated generative and on-ground exploration approach, combining leading-edge technologies and experienced exploration geoscientists to maximize the potential for discovery. Mirasol is in a strong financial position and has a significant portfolio of exploration projects located within the Tertiary Age Mineral belts of Chile and the Jurassic age gold – silver district of Santa Cruz Province Argentina.
Stephen Nano, President and CEO of Mirasol, has approved the technical content of this news release. Mr Nano is a Charter Professional geologist and Fellow of the Australasian Institute of Mining and Metallurgy (CP and FAusIMM) and is a Qualified Person under NI 43 -101.
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