Prospector Resources Corp.'s wholly owned subsidiary, Rio2 Exploraciones SAC, has entered into a mining assignment and option agreement with Compania Minera Milpo SAA, pursuant to which Rio2 has the right and option to acquire all rights and interests in seven gold exploration prospects totalling approximately 19,000 hectares in Peru.
Rio2 is required to incur a total of $5-million (U.S.) in exploration expenditures on the portfolio over a 36-month period.
To exercise the option and acquire the portfolio, Rio2 is required to complete the $5-million (U.S.) investment within the specified time period, after which it will grant Milpo a 2-per-cent net smelter return royalty over the portfolio.
If the 36-month option is exercised, Rio2 will have an additional three years to deliver a feasibility study or express its decision to start mining a project.
Rio2 is currently in the process of conducting field visits to each of the gold prospects in the portfolio to facilitate planning for the first 12 months of exploration.
"We are pleased that Milpo, a well-established Peruvian polymetallic miner, has entrusted Rio2 to explore ways to unlock value in this gold exploration portfolio. This transaction will form the foundation for Rio2 to continue looking for opportunities to partner with Latin American and international mining groups to further surface value from operating mines and exploration assets," commented Jose Luis Martinez, executive vice-president, corporate development and strategy.