Through an amended agreement, Golden Arrow has earned the right to fully acquire the Indiana gold-copper project over a 74-month period, which will lapse in December 2024
Golden Arrow Resources, a Canadian mining exploration company, has renegotiated the terms of its option agreement with Mineria Activa for the 100% acquisition of the Indiana gold-copper project in Chile.
The parties had signed an agreement pertaining to the Chilean gold-copper project in October 2018.
Through an amended agreement, Golden Arrow has earned the right to fully acquire the project over a 74-month period, which will lapse in December 2024.
The total consideration of the acquisition remains unchanged at $15.1m. However, changes have been made to the payments made before the end of 2019 and the subsequent payment, which will be due in one year.
According to Golden Arrow, the Indiana gold-copper project is expected to begin production in the near-term production, while having an upside potential. The Chilean gold-copper asset includes a permit for mining in the area of an historic resource which has two ramps that give access for exploration and development.
Golden Arrow executive chairman, CEO and president Joseph Grosso said: “The Indiana project has the potential to be rapidly advanced towards mining, and to be a base to build on with additional projects in the area.
“By renegotiating the terms, we have de-risked the project in a way that is more appropriate for our exploration and development focus, allowing us to build value through exploration and look to monetize the asset through sale, or partnered development.”
Drilling plans for the Indiana gold-copper project
The Canadian mining exploration company plans to undertake a minimum 2,500m drill programme this year. The company expects to start a 2,500m drilling campaign to confirm and further delineate high-grade mineralisation prior before it plans additional drilling and begins engineering studies.
By the end of 2021, Golden Arrow intends to execute a further minimum 2,500m drill programme apart from launching preliminary engineering studies.
Located in the 3rd Region, the Indiana gold-copper project is nearly 35km away from the Golden Arrow’s Atlantida copper-gold project. The Indiana asset is located within an iron-oxide-copper-gold (IOCG) belt that includes mines and deposits like Manto Verde, Cerro Negro Norte, and Candelaria.