Canada-based exploration company Bear Creek Mining has acquired two projects in Peru for a consolidated amount of $11.47m.

The mines acquired by the company includes – Carito and Maria Jose gold.

As per the agreed terms, the company acquire an undrilled gold prospect Carito by making payments $7.47m over the next 5 years.

The agreement also provides provisions for owning 2% NSR royalty for $6m if the deposit is less than 3 million gold equivalent ounces.

Additionally, the royalty can be reduced to 1% NSR for $6m if the deposits are greater than 3 million gold equivalent ounces.

Acqusition of the Maria Jose project was concluded for a payment of $4m over four years.

Bear Creek said in a statement, "The initial option payment is US$300,000 and the second payment of US$250,000 is due in 18 months, allowing the Company sufficient time to complete initial drill testing to define the potential in advance of larger, balloon payments."

The company is however required to pay an additional $2m if he deposit is greater than 1 million ounces gold in resources.

Bear Creek Mining CEO Andrew Swarthout stated, "The projects offer potential for high-grade, gold veins and near-surface, disseminated gold mineralization in areas with excellent infrastructure and good community relations.

"We anticipate drilling to commence on both projects in the second half of 2013, pending permit approvals."