Artha will also form a joint venture (JV) with Cardero Argentina, a wholly owned subsidiary of Cardero Resources.
The Organullo project is an relatively advanced epithermal gold-silver project located in northern Salta Province, with excellent potential for both high sulphidation type epithermal high grade gold and silver as well as bulk tonnage lower grade gold and silver mineralization.
Artha will earn the undivided 55% right, title and working interest in and to the Organullo property by incurring an aggregate of $1.5m in exploration expenditures over four years and by issuing 350,000 common shares in the capital of Artha over three years.
Upon Artha having earned its initial 55% interest, Cardero has a right to maintain its 45% interest through pro rata funding of exploration work going forward, the company said.
Alternatively, Cardero may choose to be diluted down to a minimum of 10%, at which point its interest will be converted to a 2% NSR royalty.
Cardero said that joint venturing of the Organullo project is part of its strategy to option-out all non-core assets, allowing the company to focus on development of its coal and iron ore projects.
