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Condor Resources options Cobreorco project to Teck Resources, Peru

January 4, 2024
in Business
Condor Resources options Cobreorco project to Teck Resources, Peru
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Condor Resources Inc. [TSXV-CN] and its Peruvian subsidiary have entered into an option and joint venture agreement on its wholly owned Cobreorco copper-gold project located in the Apurimac department in Peru with Teck Peru SA, a subsidiary of Teck Resources Ltd. [TSX-TECK.A, TECK.B; TECK-NYSE].

Under the terms of the agreement, Teck has a first option to earn a 55% interest in the Cobreorco project over three years by completing US$4 million in exploration expenditures and making cash payments totalling US$500,000. An initial cash payment of US$80,000 was made on signing the agreement. The start of the three-year term commences once the permits and approvals required to commence a drill program are in place.

On exercise of the first option, the parties intend to form a dedicated holding company that will own the Cobreorco concessions, and, thereafter, Teck has a second option to increase its interest in the Cobreorco project to 75% over the next three years by completion of a further US$6-million in exploration expenditures and additional cash payments of US$600,000.

“Condor is pleased to welcome Teck and their technical expertise to advance the exploration of our Cobreorco project towards a new discovery of critical and precious minerals,” commented Ever Marquez, Condor’s vice-president of exploration.

In June 2023, Condor Exploration Peru SAC applied to the Peruvian Ministry of Energy and Mines for the primary environmental permit required to initiate a drill program at Cobreorco. The declaracion de impacto ambiental (DIA), seeks approval for up to 40 drill platforms on a 4 km2 area of the project.

The 50 km2 Cobreorco porphyry-skarn project in south-central Peru was acquired by staking and is royalty-free and 100% owned by Condor. Numerous porphyry-related and skarn-related copper-gold occurrences are exposed in outcrop, and geophysical surveys completed by Condor support the potential for discovery of copper and gold porphyry and skarn-related deposits within the main two-square-kilometre area of interest.

Condor is an active explorer focused exclusively on Peru, supplemented by a project generator and royalty model designed to generate exploration capital whilst minimizing shareholder dilution. The company’s objective in advancing its portfolio of projects is the discovery of a major new precious metal or base metal deposit in Peru.

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