Nativo Resources plc has agreed to work with a mining services company to identify new gold and other precious metals potential projects in Peru.
SHOVEL-READY
The framework agreement with operator Constructora e Inversiones Andina Kuboc C&P SAC will see the two companies evaluate and develop mining opportunities.
Kuboc already holds the mining and logistics contract for Nativo’s Bonanza mine on the Tesoro concession in the Arequipa region.
Nativo said that the parties had a shortlist of gold, silver and copper exploration opportunities, across the Ayacucho, La Libertad, Arequipa and Ancash regions.
The company expects to spend up to US$70,000 to review the prospective projects.
If a project progresses, Nativo will hold 75% and Kuboc 25% in a special purpose vehicle, subject to Nativo recovering its invested capital.
The company said it would have a pre-cost recovery “waterfall” of 85% of the profit share until it recovers the full cost.
Nativo noted that Kuboc currently operated two mines and has expertise in non-ferrous metals, including gold, as well as transport and construction in the mining industry.
Chief executive officer Stephen Birrell added: “The criteria for project selection will be based on projects being commercially rewarding and able to be in production within 12 months, i.e. effectively being shovel ready.
“As we continue executing our strategy in Peru by progressing towards initial ore sales, advancing our processing capabilities and evaluating our concession portfolio, we believe having a trusted local operating partner strengthens our ability to identify, assess and efficiently advance future growth opportunities.”