Luminex Resources has announced the signing of a formal earn-in and joint venture agreement with a subsidiary of the Anglo American relating to Pegasus A, Pegasus B and Luz concessions in Ecuador.
Anglo American has the right to earn a 60% ownership interest in a joint venture company indirectly holding the Properties if it invests an aggregate amount of US$50 million and makes US$7.3 million of cash payments over a seven year period.
Anglo American will have the right to earn an additional 10% ownership interest in the joint venture company (the Fourth Earn-in) by sole funding all the required work up to a decision to construct a mine at the Properties, taking Anglo American’s aggregate ownership to 70%.
Post the completion of the Fourth Earn-in, Luminex will be responsible for funding its 30% pro rata share of any capital required to develop and construct a mine at the Properties (or a 40% pro rata share, if Anglo American does not exercise the right to acquire the additional 10%).
Pursuant to the terms of the Earn-In Agreement, Anglo American will pay US$1.3 million due upon signing the Earn-In Agreement to Lumina Gold Corp. (Lumina), along with the reimbursement of expenses totaling approximately US$0.3 million to Lumina and Luminex. All future cash payments associated with the Earn-in Agreement will be made to Luminex.
These terms and others announced in the March 26, 2018 Lumina press release relating to the non-binding letter of intent remain substantially unchanged from those described therein.
Preparations are underway to continue exploration activities on the Properties with Anglo American acting as manager and operator. Subject to permitting, Anglo American plans on flying an airborne magnetic ZTEM survey over the concessions during the first year of the agreement.
Source: Company Press Release