New Joint Venture with IAMGOLD in Peru Pucara Enters Option Joint Venture with IAMGOLD in Peru and Provides Corporate Update
Vancouver, British Columbia--(Newsfile Corp. - February 28, 2018) - Pucara Resources Corp ("Pucara" or the "Company") is pleased to announce the execution of a joint venture agreement with IAMGOLD Peru S.A., a wholly owned subsidiary of IAMGOLD Corporation, for the exploration of the Company's Santo Tomas Project (now known as the Los Tambos Gold Project), and to provide an update on Pucara's corporate activities and exploration programs.
Los Tambos Gold Project with IAMGOLD
Los Tambos, which encompasses Pucara's Santo Tomas property is located in the Ayacucho Region of southern Peru. Pucara geologists have identified a high sufidation, gold bearing system,which hosts a large alteration footprint coincident with an extensive resistivity (IP) anomaly in the northern part of the property supported by rock chip geochemistry up to 2.0 g/t gold. The IAMGOLD exploration team is assessing this and other targets on the property to finalize a drilling program expected to commence in 2018 -2109 once permits and approvals are granted. The Los Tambos property has recently been expanded and now covers 7,600 hectares. Pucara has established strong, positive community relations with the local communities.
Pursuant to the joint venture agreement IAMGOLD may earn a 60% interest in the property by spending US$4.0 million for project work and making US$500,000 in payments to Pucara over the next 4 years. Upon vesting, IAMGOLD has the option to earn an additional 10% interest over two years by producing a one million ounce gold equivalent resource as defined within NI 43-101, and to pay Pucara the equivalent of US$ 2.00 per ounce of gold equivalent for the total resource defined by the NI 43-101compliant resource estimate.
Corporate Activities and Financings
In late 2017 Pucara completed corporate financings totaling C$5.2 million. Private placements yielded C$4.2 million from sales of units priced at C$0.40. A unit is comprised of one common share plus a half warrant priced at C$0.60 for 36 months. Investors include Sandstorm Gold Ltd., which also purchased a 1.0% NSR royalty on each of seven exploration-stage properties held 100% by Pucara, for additional proceeds of C$1.0 million.