Copper exploration and development company EV Resources (EVR) has inked a set of agreements with GeoAndina Minerals to finalise the acquisition of 70% interest in the Parag copper-molybdenum project in Peru.

According to the terms of the definitive agreement, an initial payment of $150,000 to be paid upon the signing of a definitive agreement will be made by EV Resources once the licenses are transferred.

Besides, the Australia-based company will pay an amount of $50,000 per quarter to GeoAndina Minerals until the Parag mine achieves its first production.

The finalisation of the acquisition comes after an extensive due diligence programme that included multiple visits to the site and inspection of the 10,170m of diamond drill core.

Following the completion of the deal, the licences will be transferred to a new Peruvian company, Anta Parag, which will be held by EV Resources and GeoAndina Minerals with stakes of 70% and 30%, respectively.

In May 2023, EV Resources signed an initial agreement with GeoAndina Minerals to acquire the majority stake in the Parag copper-molybdenum project.

Under the initial agreement, EV Resources agreed to pay $20,000 for a three-month exclusivity agreement while due diligence is conducted.

Located 145km north of Lima in the province of Huaura, the Parag project covers a total area of 1,399 hectares.

EV Resources said that drill permitting and planning activities are in progress at the copper-molybdenum project for an initial 8,000m diamond hole programme.

The Parag project was explored in two phases. In the past, the exploration of the project culminated in 8,300m of drilling and the project was again explored in 2011 with an additional 10,170m of drilling.

The definitive agreement is subject to any regulatory and corporate approvals.