Australian miner Commissioners Gold (CGU) in association with its joint venture partner has entered into a memorandum of understanding (MoU) to acquire Eladium mining concession in southern Peru.

As per the terms of the agreement, CGU owns five year mining agreement for 90% of the extracted ore and an option to acquire the project within five-year period. In addition, the company has paid $5,500 on executing the MoU.

The project covering 973.75 hectares of prospective ground within the prolific Nazca-Ocoña geological belt is located 35km east of the recently commissioned Mollehuaca gold plant.

CGU further stated that the acquisition of Eladium is in line with company’s strategy to facilitate additional ore for its gold plant.

This is the second purchase for the company in a week after it acquired the Saulito gold project within the same gold belt as of Eladium and 40km southeast of the Mollehuaca gold processing plant.