Canadian copper exploration company Camino has agreed to sell a 35% stake in the Los Chapitos project in Peru to Japan-based Nittetsu Mining.

According to the terms of the agreement, Nittetsu Mining will make payments and expenditures worth C$10.1m ($7.58m) over a period of three years.

Camino stated that the proceeds from the transaction will be used for exploration, infill drilling, as well as metallurgical and engineering studies for the Peruvian copper project.

Nittetsu Mining general manager Shinichiro Mita said: “Our partnership objective with Camino is to advance the Los Chapitos copper project towards a pre-feasibility study over our initial investment period.

“We see strong geological and development potential at Los Chapitos and a dedicated group at Camino that is committed to develop a copper business with us.”

Upon the completion of the earn-in period, the Los Chapitos copper exploration project will become a joint venture (JV), in which Camino will own a stake of 65%. The remaining 35% will owned by Nittetsu Mining.

Besides, Camino will remain the operator of the copper project and maintain a production offtake of 50% from the asset.

Nittetsu Mining completed a payment of C$0.1m ($0.075m) to Camino in February 2023, when both companies executed a letter of intent for the Los Chapitos project.

Camino president and CEO Jay Chmelauskas said: “Nittetsu is an experienced copper mining operator and a partner that is focussed on funding our Los Chapitos Project towards a development decision.

“We plan to continue to explore our property to expand the known zones of copper mineralisation to determine a potential mine size.”

Located in the IOCG belt of the Coastal Cordillera of northern Chile and southern Peru, the Los Chapitos project is scheduled to begin exploration soon.