Shares of Plexmar Resources (TSX: V.PLE, Stock Forum) climbed more than 66% to 10 cents Friday after the Quebec-based company reported that it has signed, through its subsidiary, final contracts with Peruvian mining company Minera Ucucha S.A.C regarding the Bolsa del Diablo project in Peru.
As announced in November, the company signed a letter of intent with Minera Ucucha S.A.C. for the exclusive commercialization and production rights for the top 100 meters on all the concessions part of the Bolsa del Diablo project.
In return, Plexmar receives a 10% royalty from all mineral extracted and commercialized from its concessions and Ucucha obtains all necessary authorizations from the local communities to allow free and undisturbed exploration for the duration of the agreement.
According to the contract, Ucucha has 60 days to obtain community approval to resume exploration, and Plexmar says the company has “already made significant steps towards achieving that goal.” The agreement is for ten years and contains breakup provisions for both parties.
Ucucha operates three processing plants in Southern Peru and produced, in 2008, over 10,000,000 lbs of copper concentrate for total revenues of approximately US $8 million, says Plexmar.
"We are delighted to have Ucucha as a partner. They are experts in dealing with community related small scale and informal mining. They will quickly obtain the permission to pursue the exploration program while helping the informal miners increase their production in a safe and efficient way" says Guy Bedard, president of Plexmar.
Stockhouse member cvac01 posted the following thought on the company’s Bullboard Friday morning: “…this is good news IMO and long awaited for some[sic].”
