South32 to fund Inca Minerals’ Riqueza project for 60% stake

South32 is to fund a geophysical survey at Inca Minerals’ ambitious Greater Riqueza zinc-silver-lead project in Peru in return for a 60 per cent earn-in on the project.

Inca has granted South32 an exclusive option for majority ownership of the project pending agreed terms, including an exclusive offer to match any other offer for the project that comes along.

South32 has agreed to provide $US275,000 ($356,800) of phase one funding, with the phase one period yet to be agreed between the two parties. South32 will also acquire an additional 10 per cent interest in Riqueza in return for additional funding for the project’s pre-feasibility study.

Specific details of how South32’s funding will help phase one of the project include an AMAG-RAD geophysical survey across the entire 25 square kilometre project length; the survey is due to begin in the next 10 days with completion scheduled after 30–40 days, including mobilisation, data capture and verification. More detailed targeting is then expected to take a further 10–15 days after this period.

Inca managing director Ross Brown was enthusiastic about the agreement.

“South32 is a globally recognised sector leader,” he said. “We’ve found working with them to date to be extremely productive and I hope and expect they will become a highly valued partner with a big end-of-town commitment and energy to Riqueza.”

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