Post by
thinaseyeliner on Mar 10, 2014 3:29pm
Estrella to enter agreement with Buenaventura regarding Puca
Estrella to enter agreement with Buenaventura regarding Pucarana
Estrella Gold Corporation (TSX V: EST) ("Estrella" or the "Company"), announced that its subsidiary, Gallant Minerals Peru Ltd. S.A., has signed a Memorandum of Understanding with Compañía de Minas Buenaventura S.A.A. ("Buenaventura") regarding the Pucarana property in Peru.
Under the arrangements, Buenaventura will be in charge of planning, implementing and developing for the exploitation of the Pucarana property and Buenaventura will grant a 3% NSR royalty to the joint venture that will be then distributed as to 60% to Alamos Gold Inc., 36% to Estrella and 4% to Gallant Minerals Ltd. The parties expect the final agreement to be fully executed by mid May 2014.
Estrella will have no further obligations with regard to the project and will simply hold the net 1.08% NSR. In the case that gold production comes from the property in the future, Estrella will receive 1.08% of the revenues from any gold production from the Pucarana mineral claims, net of smelter costs.
Mr. John R. Wilson, President and CEO of Estrella commented, "We are excited to have Buenaventura advancing the Pucarana property on behalf of the joint venture."
About Estrella Gold Corporation (TSX-V: EST) Mineral exploration is inherently risky and Estrella increases the chances of success as a "Prospect Generator" focused on gold exploration in Latin America. Estrella identifies and acquires new mineral properties, conducts initial, low-cost exploration to define a potential new deposit and then forms joint ventures with other companies that will provide funding for more advanced exploration. Estrella has three properties optioned out or held in joint venture agreements. The Company has 31.6 million shares issued and outstanding, and is listed on the TSX Venture Exchange (TSX-V: EST). Mr. John Wilson, BSc, MS, is a Qualified Person for the purposes of National Instrument 43-101 Standards of Disclosure for Mineral Projects of the Canadian Securities Administrators, and has reviewed and verified the technical information contained in this news release.