Mantaro Precious Metals has exercised its option to acquire a 51% stake in Minera Golden Hill (MGH), the entity that owns the Golden Hill property located in Bolivia.

In August last year, the two companies entered into an option agreement, to acquire up to an 80% interest in the Golden Hill property.

Under the terms of the agreement, the company issued a total of 2,000,000 common shares and 1,000,000 share purchase warrants, in exchange for 51% shares of MGH.

In addition, the company has made cash payments totalling $500,000, and spent at least $250,000 in exploration expenditures at the Golden Hill property, since last year.

Mantaro Precious Metals chief executive officer Craig Hairfield said: “Mantaro is excited to continue its partnership with Minera Golden Hill after a year of extensive work and exciting results at the Golden Hill Property.

“Minera Golden Hill has proven to be a valuable local partner that is instrumental to the continued success of our work programs in Bolivia.

“This option exercise represents an important step for Mantaro towards its goal of advancing high-quality, district-scale mineral properties.”

Golden Hill property is underexplored, orogenic gold deposit with gold-bearing quartz veins associated with a regional structure, and is fully permitted for mining and drilling.

It lies on a broadly north-south trending regional structure that hosts the La Escarcha underground mine and Gabby, the Garrapatillia and Brownfields workings.

The property hosts a concession totalling 4,468ha within the Bolivian pre-cambrian shield, and offers direct access through the historic mining town of San Ramon.

It shows a mineralisation of greenstone-hosted orogenic gold type, with more than four kilometres of gold-bearing quartz veins.

The property has seen limited drilling, comprising only eight holes totalling 1,620m to a maximum depth of 154m.

Minera Golden Hill general manager Luis Fernando Kinn said: “Minera Golden Hill is pleased to be working with Mantaro Precious Metals to advance and realize the full potential of the Golden Hill Project.

“We have proven that any foreign company may invest in Bolivia under a safe corporate environment and with current regulations that are motivating private companies to strengthen the Bolivian mining industry.

“Mantaro was chosen as our partner due to their strong knowledge and experience with greenfield exploration programs and we are excited to see the results from the recent drilling program as well as future work programs at Golden Hill.”