Tuesday, 18th March 2008 (3091 views)

An amended joint venture deal for the development of the Silveria gold and silver property in Huarochiri, Peru, has been agreed subject to regulatory approval, it has been announced.

Journey Resources and Grenville Gold said under the new agreement, which is between Journey, Grenville, plus two Canadian and Peruvian subsidiary firms, Journey can acquire a 75 per cent interest in the site.

To do this, the company must invest a total of C$11.8 million (£5.88 million) in exploration and development at the site with a view to brining it up to production.

Investment is broken down into stages, with Journey initially required to pay C$1.3 million and issue one million shares within seven working days of the Canadian stock exchange approving the deal, or no later than June 30th.

Three months after the approval date, Journey must pay C$1.5 million to acquire a 25 per cent interest in the property and another $3 million five months later for a 50 per cent share.

It can earn a 75 per cent interest if it spends C$6 million on site exploration and pays Grenville C$1 million by January 31st 2011. However, Grenville can elect to equally split exploration costs, in which case the joint venture will remain under 50-50 ownership.

The Silveria project is located in southern Peru, east of the country's capital city Lima.

 

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