Oro Verde (ASX: OVL) has executed a binding Heads of Agreement with Argentina Mining (ASX: AVK) to acquire options over a suite of copper, gold and silver projects in the Andean Cordillera of San Juan Province, on the Chilean border of Argentina.
The two companies had previously reached a Memorandum of Understanding on 19 March 2014.
Under the Heads of Agreement, Oro Verde will acquire the project 100% of the outstanding shares in AVK’s wholly owned Argentine subsidiary Entropy Resources, which holds options to acquire the projects, for $200,000.
It has until 13 May 2014 to complete Due Diligence.
Upon satisfactory due diligence the company will pay AVK $100,000 and a further $100,000 on 8 July 2014.
Projects
The projects range from the established and previously-drilled copper-gold porphyry target at Cerro Blanco, extensive epithermal vein gold-silver mineralisation at San Francisco, to high-grade gold-silver porphyry mineralisation at Amiches.
The Cerro Blanco Project contains the advanced porphyry Copper Hill target where previous drilling intersected broad zones of sulphide mineralisation and hydrothermal alteration.
This style is characteristic of many large Andean porphyry copper deposits, and the project contains a number of additional copper-gold prospects.
The Amiches gold-silver-copper project lies within the El Indio Belt, which contains the El Indio, Tambo and Pascua-Lama gold deposits, and is one of the world’s richest mineral provinces.
Surface sampling undertaken last year returned assays including 1 metre at 18.9 grams per tonne gold with 389.5 g/t silver, and 2 metres at 12.4g/t gold and 200g/t silver.
The San Franciso Project hosts a number of porphyry and epithermal gold-silver targets; 2013 drilling intersected 5 metres at 2.1g/t gold and 34.9g/t silver.
The agreement envisages that Oro Verde will acquire 100% of the outstanding shares in an Argentinean domiciled company that holds options to acquire these projects.
OVL is very lightly capitalised at circa $2 million, and also controls the large scale Timon copper porphyry project in Chile.
Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.